Tesco chief executive Ken Murphy is in line to receive a £10m payout this year, an unprecedented sum for any supermarket boss.
Murphy’s record pay will come from his £1.4m salary and performance-related pay of £8.7m – more than double his £4.4m pay last year.
The chief executive’s remuneration includes an annual bonus of up to £3.6m and a share-based bonus worth around £5.1m at present prices, which pays out in June, The Times reported.
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Murphy’s record pay deal comes at a time when the price of groceries has risen sharply and many families are still struggling to afford to put food on the table amid the cost-of-living crisis.
Tesco reported its pre-tax profits had more than doubled to £2.29bn in the 12 months to 29 February, up from £882m last year.
Murphy defended the grocer’s profits and insisted it had “never been more competitive on price” amid claims from union Unite that it was “raking in mountains of cash”.
Tesco said it was investing £70m in awarding store colleagues a ‘thank you’ payment, which Murphy said was to “recognise their brilliant work serving customers this year”.
For the average full-time Tesco store worker, the investment represents a payment of around £300.
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