17th Feb 2015 17:37
LONDON (Alliance News) - Tesco PLC said Tuesday that it will appoint John Allan as chairman from the start of March, succeeding Richard Broadbent.
Allan is currently deputy chairman of Dixons Carphone PLC, chairman of Barratt Developments PLC and of Worldpay UK Ltd.
Following his appointment to Tesco's board, Allan will step down from the boards of Dixons Carphone and Royal Mail PLC, and will be resigning with immediate effect from his senior advisor role at Alix Partners LLP, as well as stepping down as chair of the DHL UK foundation as soon as a successor is found. Allan is expected to stay in his roles at Barratt Developments and WorldPay.
He will be paid GBP650,000 per year by Tesco, fixed for three years.
"Following a deep and thorough process run by a committee of independent non-executive directors, the board unanimously agreed that John Allan was the right candidate to chair Tesco at this important time," said Senior Independent Director Patrick Cescau.
Earlier today the Financial Times had reported that two of Tesco's largest shareholders were backing the appointment of Archie Norman, the former chief executive of Asda and current chairman of ITV PLC, for the role.
Shares in Tesco closed up 0.8% at 244.35 Tuesday. The announcement was made after the market close.
By Hana Stewart-Smith; [email protected]; @HanaSSAllNews
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