Tesco boss Ken Murphy pays £4.7m package as shoppers face rising food prices | Economic news
The Tesco boss struck a bumper pay deal totaling £4.74million over the past year, the supermarket giant revealed in its annual report.
It comes as households grapple with rising food prices, amid soaring inflation and worsening Cost of life crisis.
The report, released on Friday, showed that Ken Murphy’s overall compensation was 224 times the total salary and benefits of the median member of staff at Tescowhich was £21,217.
Mr Murphy, who started as the company’s chief executive in October 2020, received a base salary of £1.54million for the year ending February.
This was bolstered by around £3.2million in performance-related bonuses after supporting the company’s recovery during the coronavirus pandemic.
The retail giant’s group Pre-tax profits jumped to £2.03bn in the year to February 26, up from £636m the previous year.
Tesco’s management team has also helped the company tackle key supply chain challenges, including shortages of lorry drivers.
Mr Murphy received £992,000 for his first five months at the helm in the previous financial year.
His predecessor, Dave Lewis, received £6.3m in total salary in the 2020 financial year.
In the past year, recently appointed chief financial officer Imran Nawaz landed a £5.4m pay deal, dragged down by a £3.5m compensation package after leaving his previous role at Tate & Lyle.
The report said Nawaz received a 4.29% increase in his base salary, while Mr Murphy recorded a 2.25% increase.
But the company pointed out that store and warehouse staff received a 5.8% increase in their base salary.
Chairman John Allan saw his pay deal stay roughly the same at £695,000.
Earlier this week, Mr Allan said there was a ‘compelling need’ for an exceptional tax on energy companies after seeing supermarket customers “extremely tense”.
Families and businesses are under the weight of rising world prices largely caused by demand outstripping supply as the covid the crisis is easing and, lately, the effects of Russia’s war in Ukraine.
Figures released by the Office for National Statistics (ONS) next week are advanced by economists to show inflation close to a 40-year high in April, at around 8.5%.
The jump from the March level of 7% will be primarily a consequence of rising energy costs which will be passed through the supply chain, increasing the cost of doing business and ultimately the cost of daily goods and services.