Reid, who last year stepped up from deputy executive chairman to non-executive chairman was also paid £2.7m including his basic salary and bonuses.

According to the company’s annual report Reid, who has worked for the supermarket for 19 years, also received £870,000 from exercising his share options.

Chief executive Sir Terry Leahy saw his total pay rise by five per cent to £2.97m, he also received another £610,000 from exercising some of his share options. Sir Terry has accrued a pension pot of £3.8m, giving him a pension of £433,000 a year.

Total board pay rose by nine per cent to almost £16.9m during the year. Also the executive directors have agreed to cut the length of their contracts from two years to 12 months after coming under fire from institutions.

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