Tesco boss handed £10.8million pay package as millions of Britons skip meals

Tesco chief executive Ken Murphy received a total remuneration package worth £10.8million during the 2025/26 financial year, according to the supermarket giant’s latest annual report.

The package represents an increase of around £1million compared with the £9.8million Mr Murphy received during the previous financial year.

Tesco’s annual report revealed the chief executive was awarded a £3.4million bonus alongside £5.7million in share awards linked to company performance.

The retailer reported earnings of £3.15billion for the year ending February 28, up slightly from £3.13billion during the previous year.

Sales excluding VAT and fuel increased by 4.6 per cent to £66.6billion as Tesco secured its strongest market share position in more than 10 years.

Mr Murphy’s basic salary is also due to rise by a further 3 per cent later this month, taking it to £1.54million.

The figures come as millions of households across Britain continue to face pressure from rising food costs and wider cost of living challenges.

Research published by consumer group Which? found that three million households had skipped meals in an attempt to reduce spending.

The organisation also reported that around 4.5 million households, representing 15 per cent of all families, had cut back on certain food items entirely.

Food and drink inflation rose to 3.7 per cent in March, according to the latest figures. Several everyday grocery staples recorded significantly higher price increases over the same period.

Milk prices increased by almost 13 per cent compared with a year earlier, while fish prices rose by more than 10 per cent.

Meat prices also climbed by 5.8 per cent over the previous 12 months. Which? found that 85 per cent of adults were concerned about rising supermarket prices.

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Melissa Bethell, chairman of Tesco’s remuneration committee, said: "The remuneration for our executive directors is closely tied to the strong performance of the business.

"Our policy is comparable to other Ftse 50 companies and reflects the complexities of managing a large-scale operation.

"A significant portion of the total package has been achieved due to Ken Murphy and Imran Nawaz meeting or exceeding challenging targets in a competitive sector, creating value for all stakeholders."

Tesco recently announced a 5.1 per cent pay rise for staff working across stores, warehouses and customer engagement centres.

The retailer said the increase represented an investment worth more than £200million, and employees also shared a £65million bonus pot following the company’s improved financial performance.

The wider economic backdrop has continued to weigh on household finances across the country.

Which?’s consumer confidence tracker fell to minus 61, marking its lowest level since the height of the cost of living crisis in 2022.

Unemployment currently stands at around 5 per cent, while youth unemployment has reached 16 per cent, which is the highest level in more than a decade.

Recent figures also showed wage growth slowing, with average earnings increasing by 3.6 per cent during the three months to February, the weakest rise recorded in more than five years.

Rocio Concha, director of policy and advocacy at Which?, said the findings highlighted increasing financial pressure on households.

"The deepening strain not only on household finances, but also on people's physical and social wellbeing as cost of living pressures bite.

"Many are already making difficult choices, such as skipping meals. Without meaningful interventions, the number of people taking drastic measures is likely to increase."

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