Tesco CEO Ken Murphy pockets £4.74m pay packet

Tesco boss Ken Murphy has been handed a £4.74 million pay packet for the past year, more than 400 times the wage of an average worker at the supermarket.

Some £3 million of that was awarded as a performance-related bonus.

The UK’s largest supermarket released its annual report today, revealing the extent of the CEO’s total pay package. Murphy, who started at the position in October 2020, received a £1.54 million basic salary for the year to February.

He also received around £3.2 million of performance-related bonuses after supporting the supermarket giant’s recovery during the Covid-19 pandemic.

The news comes as food prices for customers continue to rise amid a host of intensifying pressures on household budgets.

Earlier this week Tesco chairman John Allen told BBC Radio 4’s Today programme that customers are “extremely stretched” and called on the government to help ease the burden by placing a windfall tax on energy companies.

The supermarket giant’s group pre-tax profits jumped to £2.03 billion in the year ending February 26, up from £636m the previous year.

READ MORE: Tesco to offer hybrid workers flexible working space instore

Data from Tesco’s full year results – for the 12-month period ending 26 February 2022 –  revealed Murphy’s total pay deal ended up being 224 times more than the overall pay of a average employee.

According to the annual report, Murphy also received £992,000 for his first five months as CEO in the previous financial year.

Dave Lewis, Murphy’s predecessor,  pocketed £6.3 million in total pay in the 2020 financial year, while recently-appointed CFO Imran Nawaz was handed £5.4 million. He also received a £3.5 million compensation payment after leaving his position at Tate & Lyle.

The company also highlighted its stores and warehouse staff received a 5.8% increase in basic pay.

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