TESCO’s Sir Terry Leahy received £5.2m last year in a mixture of salary and performance-related cash and shares.
The remuneration of the retailer’s chief executive compares with £5.1m the year before and is part of a boardroom pay package worth £25m compared with £22.2m last year. Leahy’s basic salary was £1.4m.
The pay bonanza comes in a year when Tesco’s underlying profit reached £3.4bn, up 10.1 per cent.
Tim Mason, Tesco’s head of Fresh & Easy, the group’s US arm, earned £4.26m, up from £3.8m the year before. Mason has headed up Fresh & Easy since its launch in January 2006.
Leahy said in his review of the year that the start-up losses in the US will start to reduce now that Fresh & Easy has established itself.
Leahy has been at Tesco, which employs around 472,000 people, since 1979, joining its board in 1992.