Tesco CEO's Pay Soars Amidst Scrapped Food Waste Target

Tesco CEO Ken Murphy's total compensation reached £10.8 million in the past year, marking an increase from the previous year. This rise is partly attributed to the scrapping of a food waste reduction target from his long-term bonus eligibility.

Murphy's pay package included basic salary, an annual bonus, and a significant long-term bonus. While he met targets for carbon reduction and earnings, he fell short on diversity and inclusion metrics and the former food waste goal.

Tesco's market share has grown to 28.1%, benefiting from the weaker performance of rivals such as Asda and Morrisons. The supermarket giant aims for a 30% market share, a level not seen since 2007.

The company has removed the food waste target from its bonus scheme, citing an internal review of how food waste was accounted for. A new market share target has been introduced for future bonus cycles.

In addition to executive compensation, Tesco workers will share a £65 million bonus, reflecting an 8.5% rise in profits to £2.4 billion and a 4.3% increase in sales to £66.6 billion for the financial year ending February 28, 2026.