How John Allan's Departure from Tesco Plc Affects the Business

Key Highlights :

1. John Allan will step down as chair of Tesco after the 's AGM next month.

2. Four people have come forward to accuse Allan of inappropriate behaviour, three of which relate to comments he made about a female staff member at the Confederation of British Industry (CBI) while he was of the lobby group.

3. Allan "vigorously denied " of the allegations, but admitted to the other, relating to comments made about a female staff member at the CBI meeting.

4. Tesco said Allann "unreservedly apologised" for the comments.

5. One of the allegations was that Allan had touched the bottom of a staff member at the Tesco AGM in 2022.

6. Tesco said it "instigated an extensive review of the allegation" but "has not identified any evidence or complaints in relation to John".

7. Senior independent director Byron Grote will become interim chair.

8. Allan was paid £687,000 in fees plus a further £8,000 for expenses last year, during which he attended five of Tesco's six board meetings, plus a combined 10 meetings of board subcommittees.

9. He was president of the CBI from 2018 until 2020.

10. The CBI and its leadership have been subject to a number of allegations of misconduct in recent months.

     John Allan’s departure from Tesco Plc, announced today, has raised many questions about the future of the grocery giant. Allan had been the Chairman of Tesco since 2015 and had been accused of inappropriate behaviour last week. Tesco revealed that Allan would step down after the company’s AGM next month, and he has vehemently denied the allegations made against him.

     The allegations, which were reported by the Guardian earlier this month, include four claims of inappropriate behaviour and one claim that he touched the bottom of a staff member at the Tesco AGM in 2022. Tesco said it “instigated an extensive review of the allegation”, which “has not identified any evidence or complaints in relation to John”.

     In a statement, Allan said: “It is with regret that I am having to prematurely stand down from my position as chair of Tesco Plc following the anonymous and unsubstantiated allegations made against me, as reported by the Guardian. These allegations are utterly baseless, as the internal procedures undertaken by Tesco prove.”

     Tesco said that it had received no complaints but that the claims “risk becoming a distraction”. Senior independent director Byron Grote will become interim chair and Tesco has already begun succession planning for Allan’s replacement.

     Allan was paid £687,000 in fees plus a further £8,000 for expenses last year, during which he attended five of Tesco’s six board meetings, plus a combined 10 meetings of board subcommittees. He was president of the CBI from 2018 until 2020. The CBI and its leadership have been subject to a number of allegations of misconduct in recent months. Its director general Tony Danker stepped aside in March because of these claims.

     Tesco chairs dipped slightly after the announcement, to 267.6p. This is a reflection of the uncertainty surrounding the company and the implications of Allan’s departure.

     The departure of John Allan from Tesco Plc has left the company in a state of flux. While Tesco has said it has received no complaints, the claims have the potential to become a distraction. Tesco has already begun succession planning and it remains to be seen who will replace Allan and how this will affect the future of the company.

Continue Reading at Source : standarduk