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Tesco boss makes £5m after taking seven per cent pay cut
26.05.09
Sir Terry Leahy, chief executive of Tesco, took a 7 per cent pay cut last year but still collected more than £5million in salary and bonuses.
As Tesco's profits climbed above the £3 billion mark for the first time Leahy's remuneration came down by £370,000 to £5.1 million.
The drop in bonus payout came after the failure of the supermarket giant's push into the United States with its Fresh & Easy chain not yet breaking even.
Leahy's base salary rose from £1.29 million to £1.36million but his total bonuses declined from £4.1million to £3.7 million as he received only 45% of the maximum part of his long-term share bonus which is directly related to the US business.
Aged 53, Leahy saw his pension pot boosted by £1.23million last year.
He can retire at any stage after his 57th birthday on a guaranteed pension of two thirds of his basic salary, which would currently be worth £916,000 a year.
Across Tesco some 207,000 staff shared a total of £98million in bonuses.
