Tesco boss earned almost £4.5m in 2022 despite profits halving
The boss of Tesco earned almost £4.5m last year despite profits halving and price rises for shoppers.
Ken Murphy’s total £4.4m package compared with £4.7m a year earlier, after his bonus dipped because of missed targets on profits and food waste. His basic salary rose 1.7% to £1.4m.
The chief executive’s basic salary has risen another 3% this year, which could result in him earning at least £5m in the year ahead and be in line for a further £3.9m long-term bonus based on performance over three years.
Tesco, which owns the Booker grocery wholesaler and runs stores in eastern Europe and the Republic of Ireland as well as the UK, has said it expects underlying operating profit to remain flat in the year ahead, pledging to “prioritise investment in our customer offer while doing everything” it could to “offset the impact of ongoing elevated cost inflation”.
Supermarkets are under pressure to take action against soaring food prices, with the prime minister, Rishi Sunak, set to host a meeting of big suppliers, retailers and industry bodies in Downing Street on Tuesday.
In a phone meeting on Thursday night, supermarket leaders told government officials they believed inflation was easing.
The price of some key foods, including milk, butter and bread, have been cut in recent weeks at major chains. However, overall food prices are expected to continue to rise throughout the second half of this year as energy and labour costs remain high.
The consumer group Which? has criticised Tesco and other big supermarkets for not doing enough to keep down the cost of essential foods in the face of cost price inflation in raw ingredients, fuel and wages.
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