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Tesco boss Ken Murphy paid £4.7m as customers struggle

Tesco boss Ken Murphy warns that inflation is “really on customers’ minds” as it emerges he was paid £4.7m last year

The Tesco boss warned that inflation “is really on customers’ minds” as it emerged he was paid £4.7m last year.

In the annual report, chief executive Ken Murphy said “it is now more than ever essential that customers can rely on Tesco for value”.

But the document also revealed that the father-of-three, who took the reins in October 2020, topped off his £1.35m salary with a £3.2m bonus along with pension contributions and other benefits worth £189,000.

Tesco boss Ken Murphy paid 47m as customers struggle

This included £26,099 of ‘commuting support’ to help with travel between his family’s home in Ireland and Tesco’s headquarters in Welwyn Garden City. The average Tesco worker earns £19,676.

The details came as new figures showed two in five Britons bought less food over the past month, and came just days after Chairman John Allan spoke of the difficulties he was seeing at Tesco stores, warning that the country faced ‘real food poverty for the first time in a generation’.

Allan received £695,000 from Tesco last year on top of the £334,000 earned as chairman of Barratt Developments.

He said: “I heard for the first time in years of customers saying to the cashiers, ‘Stop when you hit £40’ or something like that.” They don’t want to spend a penny on it, instead of having everything checked.

Andrew Speke, a spokesman for the Center for High Pay, said: “Giving your leader such a large salary package in the midst of the cost of living crisis will not go down well with workers or their clients.

“Tesco should spend this money on keeping food prices as low as possible, to ensure their loyal customers can still afford to shop there as food prices skyrocket across the board.”

The UK’s largest supermarket enjoyed a strong performance last year with profit rising from £636m to £2bn and revenue topping £60bn.

According to recent figures from Kantar, Tesco was the only established supermarket to increase its market share in the 12 weeks to April this year, by 0.3 percentage point to 27.3 percent. Others have lost ground to Aldi and Lidl as shoppers look to save money.

As well as increasing its market share, Murphy helped Tesco weather the pandemic and major supply chain challenges, including a truck driver shortage.

In the last year, newly appointed CFO Imran Nawaz secured a £5.4m pay deal, buoyed by a £3.5m compensation payout after leaving his previous role at Tate & Lyle.

Families and businesses are under the weight of global price increases caused in large part by the pandemic and the war in Ukraine.

Salary details for Tesco’s top brass come as more Britons cut back on food purchases due to rising cost of living. Around two in five, or 41 percent, of adults reported that they bought less food in the past two weeks, according to the Office for National Statistics.

The figure, taken from survey responses between April 27 and May 8, is 39 percent higher than the previous survey in April.

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