John Lewis chief Jason Tarry received a pay increase of more than 20 per cent last year, even as the employee-owned retailer and Waitrose owner trimmed thousands from its workforce.

The group’s annual report, as described by Business Plus, shows that his base salary rose from £990,000 to £1.2m in April, taking total pay to £1.26m once benefits were included.

The rise came at a time when the business was still working through a major turnaround.

The report also showed that the partnership’s headcount fell by 3,300 to 65,700, with most of the reduction coming from roles left unfilled after staff departed.

That follows a wider period of restraint at the business: the Guardian reported last year that John Lewis had already cut about 3,500 jobs and was preparing further reductions as part of a long-term cost-saving drive.

In January 2024, the group also set out plans that could have removed as many as 11,000 posts over five years.

Tarry’s larger package reflects a change in structure at the top of the group, after the chairman and chief executive roles were combined.

John Lewis said his remuneration had been aligned with the £1.2m pay deal previously awarded to former chief executive Nish Kankiwala. The company said this was because the chairman now leads both the executive team and the partnership board.

The pay rise sits alongside signs that the turnaround is gaining traction. In March 2026, John Lewis announced a 2 per cent annual bonus for staff, its first in four years, after underlying profits rose 6 per cent and sales reached £13.4bn, according to the Guardian.

The group has also been investing in store refurbishments, new brands and other changes intended to revive the department store arm, after years in which it was criticised for losing focus.

Those efforts have been accompanied by higher costs, including a £40m increase in employer National Insurance contributions and £13m in packaging levies.

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