Tesco pays Sir Terry Leahy £8.5m since retirement as his legacy comes under fire

The payments, revealed by The Guardian through its analysis of share awards, comes after Tesco profits dropped for the first time in 20 years this year.

The supermarket has also scrapped its loss-making US business Fresh & Easy, spearheaded by Leahy, at a cost of £1bn.

The Guardian study found Leahy had received two tranches of three-year performance payouts worth £2.95m since his retirement as Tesco’s remuneration committee judged performance targets to be met, or partly met.

Leahy has also received shares worth £5.47m from Tesco’s executive incentive scheme since his departure. These were deferred annual bonus rewards, held by the company for three years before being released, however, in Leahy’s case it was accelerated because of his departure.

The bonus revelation comes after Leahy’s legacy was questioned by former Tesco chairman and chief executive Lord MacLaurin. At the Tesco AGM last month, he said he was saddened by Leahy’s legacy.

He said: “When you judge his legacy, it’s very sad. This company is not going to be fixed overnight. It is a two or three-year job and I urge you [current chairman Sir Richard Broadbent] to give Philip Clarke and his team time to do this.”