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| Tesco brings in ex-M&S finance chief two months early to clean up accounts | Tesco brings in ex-M&S finance chief two months early to clean up accounts |
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| Tesco has filled the void at the top of its finance operation after Marks & Spencer allowed Alan Stewart to join its crisis-struck rival as finance director more than two months earlier than planned. | Tesco has filled the void at the top of its finance operation after Marks & Spencer allowed Alan Stewart to join its crisis-struck rival as finance director more than two months earlier than planned. |
| Stewart starts as Tesco’s chief financial officer on Tuesday, a day after Britain’s biggest retailer was thrown into turmoil when it admitted overstating expected first-half profits by £250m. The accounting shambles, the subject of an independent inquiry, raised questions about why Tesco had gone for more than five months without a board-level finance chief. | Stewart starts as Tesco’s chief financial officer on Tuesday, a day after Britain’s biggest retailer was thrown into turmoil when it admitted overstating expected first-half profits by £250m. The accounting shambles, the subject of an independent inquiry, raised questions about why Tesco had gone for more than five months without a board-level finance chief. |
| As analysts accused Tesco of leaving its finance operation leaderless for months, Dave Lewis, Tesco’s new chief executive, called Marc Bolland, M&S’s boss, and asked for Stewart to be released early from gardening leave. Bolland decided that after more than two months out of M&S he was sufficiently detached and agreed. | As analysts accused Tesco of leaving its finance operation leaderless for months, Dave Lewis, Tesco’s new chief executive, called Marc Bolland, M&S’s boss, and asked for Stewart to be released early from gardening leave. Bolland decided that after more than two months out of M&S he was sufficiently detached and agreed. |
| Stewart’s arrival coincides with figures showing Tesco’s sales down 4.5% in the UK grocery market from a year earlier in the three months to mid-September. Tesco’s market share was unchanged from the previous three months at 28.8% but was down from 30.2% the year before, research by Kantar Worldpanel showed. | Stewart’s arrival coincides with figures showing Tesco’s sales down 4.5% in the UK grocery market from a year earlier in the three months to mid-September. Tesco’s market share was unchanged from the previous three months at 28.8% but was down from 30.2% the year before, research by Kantar Worldpanel showed. |
| Tesco announced Stewart’s appointment in July but M&S held him to his contract and sent him home until 1 December. The delay left Tesco without a finance chief after Laurie McIlwee resigned in April. He stayed on to hand over his duties but left the board and the executive leadership team. | Tesco announced Stewart’s appointment in July but M&S held him to his contract and sent him home until 1 December. The delay left Tesco without a finance chief after Laurie McIlwee resigned in April. He stayed on to hand over his duties but left the board and the executive leadership team. |
| Tesco’s chairman, Sir Richard Broadbent, said on Monday that McIlwee had not been involved in the business for recent “days and weeks” though he declined to say when McIlwee was last in the office. Lewis said he would look at how to get Stewart on board earlier than his agreed start date. | Tesco’s chairman, Sir Richard Broadbent, said on Monday that McIlwee had not been involved in the business for recent “days and weeks” though he declined to say when McIlwee was last in the office. Lewis said he would look at how to get Stewart on board earlier than his agreed start date. |
| Stewart’s sudden arrival is the second time bad news has forced Tesco to bring forward a top appointment. Lewis was meant to arrive from Unilever on 1 October but he started a month early after Tesco issued its third profit warning in eight months and slashed its interim dividend by 75%. | Stewart’s sudden arrival is the second time bad news has forced Tesco to bring forward a top appointment. Lewis was meant to arrive from Unilever on 1 October but he started a month early after Tesco issued its third profit warning in eight months and slashed its interim dividend by 75%. |
| In a statement, M&S said: “Marks and Spencer Group plc confirms that Alan Stewart’s employment as chief finance officer will formally terminate today – 23 September 2014, having been on a period of garden leave since 10 July 2014. M&S will make no remuneration payments in lieu of notice or otherwise to Mr Stewart from this termination date.” |