Tesco chief Sir Terry Leahy took a £370,000 cut in his pay and bonus package last year after the US business failed to hit some targets.

Leahy’s salary, benefits and performance-related emoluments, outlined in Tesco’s annual report, for the year to February 28 totalled £5.102m, down from £5.472m the previous year.

As part of the scheme Leahy is entitled to 50 per cent of his salary in deferred shares if the retailer hits “aggressive” objectives relating to the US chain. He was awarded 45 per cent of the potential maximum amount.

Tesco’s US chain Fresh & Easy has been hit by the deep recession, which hit the country shortly after it opened at the end of 2007.

Other directors have also taken a hit. Tim Mason, who heads up Fresh & Easy, also received 45 per cent. His total package was £3.785m, down from £4.530m the year before.

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