John Lewis increases chairman's salary amidst workforce reduction

John Lewis has increased the salary of its chairman Jason Tarry by more than 20 percent, despite a reduction in its workforce over the past year, according to reports from Business Plus.

Tarry, who joined the employee-owned group in September 2024 on a salary of 990,000 pounds, reportedly saw his base pay rise to 1.2 million pounds last April. The increase brings his total pay to 1.26 million pounds, including bonuses and benefits.

The pay rise comes as the retailer reduced its workforce by around 3,300 employees, bringing total staff numbers across John Lewis and Waitrose to approximately 65,700. The reduction was largely due to unfilled roles rather than direct job cuts.

Despite this, the group recently reinstated its annual staff bonus, announcing a 2 percent payout after several years of limited or paused distributions.

In a statement to Business Plus, the retailer said: “With the chairman and CEO roles combined, the chairman’s remuneration reflects leadership of both the executive team and the partnership board.”

The adjustment aligns Tarry’s salary with that of former chief executive Nish Kankiwala, following the decision to merge the chairman and CEO roles.

The update comes as the business continues efforts to strengthen its retail performance. In recent months, John Lewis has focused on revitalising its department store offer, including investment in physical locations, the return of its “Never Knowingly Undersold” pledge, and the introduction of new brands and in-store experiences.