Tesco chief executive Ken Murphy received a total remuneration package of £10.8 million [1] for the 2025/26 financial year.
The pay increase reflects the retailer's dominant position in the competitive UK grocery sector. As the company reports its highest domestic market share in a decade [1], the board has tied executive rewards to this growth in sales and profit.
Murphy's total pay rose by approximately £1 million [1] compared to the previous year, when his remuneration was £9.8 million [4]. This increase includes a three percent rise in his basic salary, which brought his base pay to £1.54 million [1].
The financial boost comes during a bumper year for the grocer. The company's strong performance in the U.S. — its primary domestic market — drove the decision to increase the chief executive's earnings [1], [2].
Changes were also made to the criteria for executive bonuses. The food-waste target, which previously served as a metric for Murphy's long-term bonus, was removed from the requirements [1], [2].
This shift in bonus structure accompanies the overall rise in compensation as the company capitalizes on its expanded market presence. The results reported on Friday highlight the disparity between executive compensation and broader market trends in the retail sector [1].
“Tesco achieved its highest UK market share in a decade”
The increase in Ken Murphy's pay signals that Tesco is prioritizing market dominance and aggressive growth over previous sustainability-linked incentives. By removing the food-waste target from the bonus structure while rewarding record market share, the company is explicitly aligning executive wealth with commercial scale and profitability in the UK supermarket landscape.
