Tesco has announced plans to replace Phillip Clarke as Chief Executive Officer.
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| * Phillip Clarke: Tesco's Out-going CEO. |
The announcement does not come as total surprise, as the current CEO has come under pressure in recent months to find ways to reverse declining sales.
In a press release today, Tesco said Dave Lewis will join the Board of Tesco on 1st October, 2014 as CEO in succession to the outgoing CEO, Phillip Clarke.
Dave Lewis, who is joing from Unilever, will receive a basic salary of £1.25m and standard benefits commensurate with his position. He will receive a sum of £525,000 in lieu of his current year cash bonus from Unilever, the Tesco statement said.
However, Phillip Clarke will remain in office till October 1, and will be available to assist the transition till January 2015. He will receive his current salary and benefits for the six month transitional period, during which he will either be in post as Chief Executive or supporting the transition, Tesco said.
On his part, outgoing CEO Philip Clarke said "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. Dave has worked with Tesco directly or indirectly over many years and is well-known within the business. I will do everything in my power to support him in taking the company forward through the next stage of its journey."
Tesco Chairman, Sir Richard Broadbent praised the outgoing CEO for his efforts over the past three years, to set a clear direction for Tesco to meet rapid changes in the retail market.
He said "Having guided Tesco through a substantial re-positioning in challenging markets, Philip Clarke agreed with the Board that this is the appropriate moment to hand over to a new leader with fresh perspectives and a new profile."
The Chairman said the Tesco Board was "pleased to announce today the appointment of Dave Lewis, President, Personal Care at Unilever, as our Chief Executive from 1 October, 2014", adding "Philip Clarke will continue as Chief Executive until that date and will continue to provide support to Dave until January 2015."
"Philip will also remain Chairman of our joint venture with CRE in China until that date." the Chairman said.
"Dave Lewis brings a wealth of international consumer experience and expertise in change management, business strategy, brand management and customer development [to Tesco]", Sir Broadbent said.
Tesco's Share Price responded to the announcement, trading at 290.95 and gaining 2% in value.
To read more on this, please visit www. Tesco.com.
* Photo Credit: Reuters:
On his part, outgoing CEO Philip Clarke said "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. Dave has worked with Tesco directly or indirectly over many years and is well-known within the business. I will do everything in my power to support him in taking the company forward through the next stage of its journey."
Tesco Chairman, Sir Richard Broadbent praised the outgoing CEO for his efforts over the past three years, to set a clear direction for Tesco to meet rapid changes in the retail market.
He said "Having guided Tesco through a substantial re-positioning in challenging markets, Philip Clarke agreed with the Board that this is the appropriate moment to hand over to a new leader with fresh perspectives and a new profile."
The Chairman said the Tesco Board was "pleased to announce today the appointment of Dave Lewis, President, Personal Care at Unilever, as our Chief Executive from 1 October, 2014", adding "Philip Clarke will continue as Chief Executive until that date and will continue to provide support to Dave until January 2015."
"Philip will also remain Chairman of our joint venture with CRE in China until that date." the Chairman said.
"Dave Lewis brings a wealth of international consumer experience and expertise in change management, business strategy, brand management and customer development [to Tesco]", Sir Broadbent said.
Tesco's Share Price responded to the announcement, trading at 290.95 and gaining 2% in value.
To read more on this, please visit www. Tesco.com.
* Photo Credit: Reuters:
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