Tesco boardroom overhaul continues as two more directors leave

 
Simon Neville6 May 2015

Two more directors have quit Tesco's board, as the supermarket overhauls its senior management under new boss Dave Lewis.

The departures of Ken Hanna and Stuart Chambers leave just one non-executive director from ousted boss Phil Clarke's days in charge of Britain's largest supermarket.

A total of nine board members have left Tesco following a series of profit warnings and an accounting scandal being investigated by the Serious Fraud Office.

Both non-executives declined to comment on their reasons for leaving the supermarket, but many in the City believed the only way for Tesco to put its troubled past behind it would be with a complete boardroom revamp.

In the last year, Clarke, the chief executive, Laurie McIlwee, the finance director, Richard Broadbent the chairman, along with non-executives Liv Garfield, Patrick Cescau, Gareth Bullock and Jacqueline Tammenoms Bakker, have all left.

Most served between five and six years, although Ms Garfield only served three before quitting. Deanna Oppenheimer remains the only non-executive from Clarke’s tenure.

The unprecedented boardroom cull took place after £263 million of profits had been misstated and followed years of calls for more directors with retail experience to scrutinise the actions of executives.

Since Clarke’s sacking, Dave Lewis, the new chief executive, has presided over the worst set of results in the supermarket’s history, revealing a pre-tax loss of £6.4 billion – one of the biggest losses in UK corporate history – as shoppers flocked to rival stores.

Earlier this year, John Allan was appointed the new chairman of the group, and some directors with retail experience have been appointed.

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