The boss of Tesco made £10.8m last year, about £1m more than the year before, as the UK’s biggest supermarket hit its highest share of the market in a decade.

Ken Murphy could make even more this year after being handed a 3% rise in basic pay to £1.54m and cutting food waste was scrapped as a target for his long-term bonus, according to Tesco’s annual report.

Last year’s pay included £1.51m in basic pay, a £3.4m annual bonus and a £5.7m long-term bonus which includes shares in the company.

Tesco takes more than £1 in every £4 spent on groceries in Britain , and has been helped by the weakness of rivals Asda and Morrisons.

Murphy’s long-term bonus was almost a quarter lower than the maximum possible as he failed to hit Tesco’s food waste target – which was to cut food waste by 50% by December.…