Sir Charlie Mayfield, the chairman of John Lewis, received a salary 73 times larger than that given to the partnership’s average member of staff, its latest annual report shows.
The former Scots Guards officer was paid a basic salary of £1,051,000 for the year to January, up from £941,000 the previous year. The employee-owned retailer said the increase was made to offset a reduction in his pension benefit.
However, John Lewis said Mayfield did not receive a separate salary increase as part of its annual pay review, “taking into consideration business performance”.
Last month, the company – which also owns the Waitrose supermarket chain – reported a near-11 per cent slide in annual earnings as it was hit by tough trading backcloth, higher pension charges and lower property profit.
The partnership also cut staff bonuses for 91,500 employees – or partners – to 10 per cent of their annual salary, down from a payout of 11 per cent a year ealier.
Although Mayfield’s pay already dwarfs that of the firm’s typical employee, he has the potential to earn even more. The firm’s constitution states: “The pay of the highest-paid partner will be no more than 75 times the average basic pay of non-management partners, calculated on an hourly basis.”
Once his annual bonus and other benefits were taken into account, the chairman’s total reward package came to just over £1.5m.