Tesco boss to receive record £10m pay packet

Tesco’s chief executive Ken Murphy is set to receive a £10m pay this year, according to The Times.

The unprecedented sum will come from his £1.4m salary, an annual bonus of up to £3.6m and a share-based bonus worth £5.1m in June. 

The payout, which is more than double his £4.4m pay last year, is due to a huge rise in Clubcard customers and a surge in online sales. 

But this comes amid the price of groceries rising sharply while many families struggle to keep up with the cost of living crisis. 

However some believe Murphy deserves the record payout having taken the role of chief executive three years ago during the Covid pandemic. 

Recently, the grocer reported a pre-tax profits increase of 159.5% to £2.3bn in its full-year results, up from £882m the prior year. 

This follows group sales up by 7.4% to £61.5bn, while retail LFL sales rose by 6.8% as inflation fell throughout the year.

Murphy said: “Inflationary pressures have lessened substantially, however we are conscious that things are still difficult for many customers, so we have worked hard to reduce prices and have now been the cheapest full-line grocer for well over a year.”  

The supermarket expects retail adjusted operating profit of at least £2.8bn for the 2024/25 financial year.