Former Tesco chief executive Philip Clarke was paid £764,000 by the supermarket last year

 
Emma Haslett
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Clarke continued to be paid until February this year, the report showed (Source: Getty)

Ousted Tesco chief executive Philip Clarke, who had presided over a fall of nearly 30 per cent in Tesco's share price during his three years at the helm of the supermarket, was paid £764,000 by the supermarket last year.

Tesco's annual report, published this morning, showed that although he stepped down in September last year, the supermarket continued to make "legally binding contractual payments" to both Clarke and chief financial officer Laurie McIlwee, who left in April 2014, until February this year.

The figure was on top of a £1.2m "golden goodbye" paid out to him on his departure - although the supermarket confirmed it may seek to claw back the money.

Should it be determined in the future that there was gross misconduct the company will seek recovery of the termination payment.

Although Clarke had stepped down as chief executive, he "remained with the company and was available to provide support to the business" until mid-January, the supermarket said.

"During this period he continued to receive his salary of £1.1m and relevant benefits".

McIlwee was paid his salary of £886,000 until the beginning of October.

Meanwhile, incoming chief executive Dave Lewis received £4.1m in 2014/15, despite only joining the company at the beginning of September. The figure includes "£3.3m in respect of buyout of incentives forfeited on leaving his former employer," said Tesco.

Lewis also received a cash payment of £525,000 reflecting his expected 2014 bonus, which he forfeited when he left Unilever.

Tesco shares were up 1.5 per cent at 223.8p as the market opened.

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