The John Lewis Partnership, owner of John Lewis and Waitrose, has reported a significant pay rise for its top executive alongside substantial job reductions, while also reinstating an annual bonus for employees after a four-year hiatus.
Executive Compensation Under Scrutiny
Jason Tarry, who assumed the role of chair at the John Lewis Partnership in September 2024, saw his basic salary surge by 21% to £1.2 million for the year ending January, up from £990,000 the previous year. His total remuneration package, including a £22,700 bonus and other benefits, reached nearly £1.26 million, a stark increase from £415,000 in the prior year when he worked part-time after succeeding Sharon White.
The company justified this pay hike by aligning Tarry's salary with that of former chief executive Nish Kankiwala, whose position was eliminated last year. Despite this individual increase, overall compensation for key management personnel, including directors, remained stable at £8 million, with Tarry being the highest-paid director.
Workforce Reductions and Operational Efficiency
Concurrently, the partnership reduced its workforce by 3,300 positions, bringing total employment down to 65,700 from 69,000 a year earlier. This includes 1,800 fewer full-time roles at Waitrose supermarkets and 1,500 fewer at John Lewis department stores. A spokesperson attributed the majority of these cuts to natural attrition, with less than 0.5% of partners departing due to redundancy.
Over the past three years, the group has eliminated 10,700 jobs, part of a broader strategy to streamline operations. The company has also closed stores and abandoned plans to develop rental properties above its locations to cut costs. Looking ahead, JLP plans to enhance efficiency through initiatives like electronic shelf labels and artificial intelligence, though it has not confirmed if further job losses are imminent.
Bonus Return Amid Profit Growth
In a positive development for staff, the partnership paid an annual bonus in March for the first time since 2020, following a 6% rise in underlying profits. Each employee, including the chair, received a bonus equivalent to 2% of their salary. This move comes as the retailer continues to navigate challenges in the competitive retail sector, balancing cost management with employee incentives.
