Tesco chief executive Ken Murphy received £10.8m in pay last year, an increase of about £1m on the previous year, as the UK's largest supermarket reached its highest market share in a decade.
According to Tesco's annual report, Murphy's remuneration included £1.51m in basic pay, a £3.4m annual bonus and a £5.7m long-term bonus, which includes company shares. His basic pay is set to rise by 3% to £1.54m this year.
Murphy's long-term bonus was almost a quarter below the maximum possible after he failed to hit Tesco's food waste target, which aimed to cut waste by 50% by December. He also received just one percentage point out of 8.3 available for diversity, equity and inclusion measures, though he achieved the full amount linked to carbon reduction and most of the reward tied to cashflow and earnings.
The remuneration committee has removed the food waste target from the bonus scheme and replaced it with a market share target. Tesco said the target was missed following an internal review showing that food believed to be processed for animal feed was actually going to anaerobic digestion. The company remains committed to cutting food waste by 50% by 2030 against a 2017 baseline.
Tesco's market share has risen to 28.1% from a low of 26.5% in 2020, and the company is aiming for 30%, helped by the weakness of rivals Asda and Morrisons.
Workers were awarded a bonus after profits rose 8.5% to £2.4bn and sales increased 4.3% to £66.6bn. Staff will share £65m, equivalent to about £347 on average for a full-time employee.
