Asda owner tempts new CEO with £10m pay package

Asda owner Mohsin Issa could pay the supermarket’s next chief executive a package of up to £10m, according to City sources.

The Telegraph reported that the offer of between £8m and £10m comes as Issa struggles to find a new boss for Asda, following previous failed attempts in 2022.

While Spencer Stuart headhunters are overseeing the current recruitment process, it is understood a candidate has not yet been found.

If the new boss were to receive a £10m pay packet, it would make them the joint-highest earning supermarket chief in Britain, alongside Tesco group CEO Ken Murphy, who was paid £10m last year.


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On Friday, Asda said it was “undertaking extensive international executive search to find a permanent CEO” and that while it was taking “a deliberate and thoughtful approach to hire the best possible candidate,” it was a “priority” for the board.

However, it is understood that one of the obstacles in finding a new chief executive surrounds Issa’s involvement in Asda and what his role would be when the new CEO begins at the supermarket giant.

Since he took over the day-to-day running of Asda in August 2021, the grocer’s UK market share has fallen from 14.2% to 13.1%.

The hunt for a new CEO comes as private equity firm TDR Capital has agreed to acquire Zuber Issa’s shares in Asda, becoming the majority owner of the supermarket giant.

The new agreement redistributes the ownership of the grocer to 67.5% by TDR Capital, 22.5% by Mohsin Issa, and 10% by Walmart.

NewsSupermarkets

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