Tesco Chief's Pay Package Widens Gap with Average Worker
Ken Murphy's £10.8 million compensation was 420 times the typical Tesco employee's earnings, a report found.
Tesco has once again recorded the largest pay gap between its chief executive and average worker among FTSE 100 companies. Ken Murphy's total compensation package for the past year amounted to £10.8 million, which is 420 times the earnings of a typical Tesco employee.
This finding comes from The Financial Mail on Sunday's annual audit of boardroom pay. Murphy's pay was briefly surpassed last year by Peter Dilnot of Melrose, an aerospace engineer, who received a controversial bonus scheme worth £45 million.
The High Pay Centre think-tank reported that the average FTSE 100 chief executive now earns just over £5 million annually. This figure represents 130 times the median earnings of a UK worker, marking the widest gap in eight years.
"While employee wages stagnate, living standards fall and the cost-of-living crisis continues, this is in neither the country's nor the economy's best interests," the think-tank stated.
Companies like Tesco argue that adopting US-style executive pay is necessary to remain competitive in a global market for top talent. Retail and hospitality sectors, which often employ a significant number of part-time staff, tend to exhibit some of the most substantial pay differentials.