21st Jul 2014 07:35
LONDON (Alliance News) - Tesco PLC Monday said Chief Executive Philip Clarke is to leave the retailer on October 1, and that it has recruited Dave Lewis from Unilever PLC as his replacement.
The retailer also said that current trading conditions are "more challenging" than it had anticipated in early June, and warned that first-half sales and trading profit are "somewhat below expectations."
"Having taken the business through the huge challenges of the last few years, I think this is the right moment to hand over responsibility, and I am delighted that Dave Lewis has agreed to join us," said Clarke, who will support the transition until the end of January 2015,.
Clarke's departure comes amid a difficult time for the retail giant, which has been trying to stave off increased competition in the UK by cutting prices. His departure follows the resignation of former Chief Financial Officer Laurie McIlwee, whose replacement, Alan Stewart, was poached from Marks and Spencer Group PLC earlier this month. Clarke has led Tesco since 2011.
Tesco noted that Lewis, who joins from his role as personal care president at Unilever, has been responsible for a number of business turnarounds during his career. He will receive a basic salary of GBP1.25 million and standard benefits. He will receive GBP525,000 in place of his current year cash bonus from Unilever. In addition, he will receive restricted Tesco share awards equivalent to the expected value of share awards from Unilever.
Chairman Richard Broadbent said that Lewis is already known to many people at Tesco, having worked with the business over many years in his roles at Unilever.
Tesco shares were Monday quoted up 0.9% at 287.50 pence shortly after the open, the biggest gainer on the FTSE 100.
By Samuel Agini; [email protected]; @samuelagini
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