retail

Tesco’s finance chief to step down as management shake-up continues

[ad_1]

The shake-up of Tesco’s top management continued on Tuesday after the UK’s biggest retailer said its finance director would step down next April, just over six months after chief executive Dave Lewis departs.

Tesco said that Alan Stewart, 60, was retiring and that both internal and external candidates would be considered as replacements.

It added that Mr Stewart had “played an instrumental role in the turnround of Tesco”, helping lead a corporate restructuring and a reconstruction of the group’s balance sheet. Net debt at the company fell from a peak of more than £10bn in 2015 to £2.77bn at the end of its last financial year, excluding lease and pension liabilities.

Dividend payments were resumed in 2018 after a two-year pause and last year Tesco regained its investment grade credit rating. The sale of its Asian operations later this year will substantially eliminate its pension deficit as well as fund a substantial return of capital to shareholders.

Mr Stewart was previously chief financial officer at Marks and Spencer and WHSmith and was briefly chief executive of tour operator Thomas Cook. His appointment at Tesco was announced by then-chief executive Philip Clarke in July 2014.

By the time Mr Stewart arrived at Tesco’s Cheshunt headquarters two months later, Mr Clarke had been ousted and replaced as chief executive by former Unilever executive Dave Lewis. Both men’s appointments were brought forward as weak trading and an accounting scandal engulfed the supermarket group.

“Alan has been an outstanding leader and partner at Tesco. He has made a huge contribution, and on behalf of all of Tesco colleagues I would like to thank him for all he has done,” said Mr Lewis on Tuesday.

Mr Lewis is set to leave Tesco in September and will be succeeded by Ken Murphy, who is at present on gardening leave from Walgreens Boots Alliance.

Mr Stewart will be deemed a “good leaver” in executive remuneration terms provided he does not act as a consultant or director to other retailers for six months, and will be eligible for bonus awards in the year to February 2021, but not for the two months of the 2022 financial year.

He will have one year from his retirement date in which to exercise vested options related to past bonuses, long-term incentive plans and the “golden hello” awarded upon his recruitment from M&S.

Clive Black, director of research at Shore Capital, said the announcement of Mr Stewart’s departure had come as a surprise and meant that by this time next year, chairman John Allan would have an entirely new executive team.

[ad_2]

READ SOURCE

This website uses cookies. By continuing to use this site, you accept our use of cookies.  Learn more