Tesco boss Ken Murphy handed £4.4m pay deal amid cost-of-living crisis

The supermarket giant’s latest annual report shows Mr Murphy got a total pay deal of £4.44 million, including bonuses and other benefits, for the year to February.

That is around 197 times that of the average Tesco worker, according to the report.

The deal included a base salary of £1.37 million for the year, while Mr Murphy also received £2.73 million in an annual bonus, alongside other benefits and pension payments.

Meanwhile, the group’s finance chief Imran Nawaz received a £3 million total pay package for the year, including £1.36 million in bonuses.

Mr Murphy will see his base salary increase by 3 per cent next year, while Mr Nawaz will get a 4 per cent increase.

In his introduction to the report, Mr Murphy wrote: “Inflation is a pressing reality for everyone – customers, colleagues, suppliers, and every member of our communities.

"At Tesco, we know it is our job to listen, to understand and then to act to help customers through these challenges. We also know customers are looking for value but do not want to compromise on the other aspects of their shop that are important to them.

"This is why we are focused on keeping the weekly shop not just reliably affordable, but also healthy and sustainable, while delivering great quality and convenience.”

It comes after Tesco reported a roughly £1 billion profit for the year to February last month.

The retailer’s profit was, however, less than half of the more than £2 billion it made a year earlier – with the business trying to remain competitive by jacking up prices at a slower rate than some of its competitors.

Sharon Graham, the general secretary of trade union Unite, accused the company of “profiteering” following the publication of last month’s results.

She said: “How can it be that, at a time when millions are struggling to feed their families, Britain’s biggest supermarket is profiteering as never before? What sort of country have we become?

“Frankly, the latest results are obscene.”

Total sales values grew 7.2 per cent over the year, although the volume of items sold declined as shopping habits were impacted by rocketing food and drink inflation.

In March, UK food and drink inflation rose to 19.1 per cent, the sharpest jump since 1977.

However, the Times newspaper reported on Friday that supermarkets have told the Treasury prices are on “the way down” after inflation levels peaked.

Tesco and Sainsbury’s are among grocery chains to have already reduced the price of milk, bread and butter in recent weeks after easing wholesale prices.

The Times reported that the Government had looked into France’s policy of capping the prices of staple foods but has decided not to adopt the approach.