John Allan to step down as Tesco chair amid personal conduct allegations
Tesco confirmed a succession planning process had already started over recent months and is expected to conclude soon
Register to get 1 more free article
Reveal the article below by registering for our email newsletter.
Want unlimited access? View Plans
Already have an account? Sign in
John Allan is set to step down as the chairman of Tesco following allegations regarding his personal conduct with colleagues.
Tesco noted that in recent weeks, four allegations have been made in the media in relation to his personal conduct, and while three of these have been “vigorously denied” by Allan, he apologised “unreservedly” for another comment he made.
Allan was appointed in 2015 and his tenure as chair was due to end shortly. Tesco confirmed a succession planning process had already started over recent months and is expected to conclude soon.
One of the allegations related to the Tesco AGM in 2022. In response, Tesco said it “immediately” instigated an extensive review of the allegation, which involved an internal communication to employees, inviting them to come forward if they had concerns regarding any conduct issues and specifically at the Tesco 2022 AGM.
Tesco said attendees at the meeting have been further contacted and that available video footage of the meeting has been reviewed, as have internal complaints records, including from the company’s confidential whistleblowing service.
It added the scope of the review has been considered by external legal counsel, who advised that “the steps were reasonable and appropriate in the circumstances”.
Interim chair Byron Grote said: “John has made a valuable contribution to Tesco during his eight years as chair. He has successfully led the board through the turnaround and Covid whilst helping to rebuild the business.
“While we have received no complaints about John’s conduct and made no findings of wrongdoing, these allegations risk becoming a distraction to Tesco. On behalf of the board, I thank him for his substantial contribution to the business. We are well advanced in our search for a new chair and will make an announcement in due course.”
Pending the appointment of a new chair, Grote was confirmed as interim chair. He is currently a senior independent director (SID) and chair of the Audit Committee. Meanwhile, Stewart Gilliland will now lead the process to appoint a new permanent chair.
