Tesco chair John Allan will be stepping down from his role as chair of the board and a director of the leading retailer following allegations over his personal conduct that “risk becoming a distraction to Tesco.”
Oficially leaving the role on 16 June, his tenure as chair was due to end and a succession planning process had already been initiated over recent months.
However, the change also comes as Allan has been accused of inappropriate and unprofessional behaviour by four women.
Earlier this month, The Guardian reported that Allan allegedly touched the bottom of a senior member of Tesco staff at the grocer’s annual general meeting in June 2022, and a staff member at the Confederation of British Industry made a similar claim at its annual dinner in May 2019.
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Two other female CBI staff members alleged that Allan made inappropriate remarks in 2021 and in 2019 and while Allan has denied three of the allegations, he admits to a claim regarding a comment he made about a CBI staff member’s appearance in 2019, which she found to be offensive.
Although Tesco said it has “received no complaints or concerns formally or informally” regarding the allegations related to the Tesco AGM, it immediately instigated an extensive review.
Having invited colleagues to come forward regarding any concerns, contacted atendees and reviewed video footage of the meeting, the review has not identified any evidence or complaints in relation to Allan.
However, senior independent director and chair of the Audit Committee, Byron Grote who will be sitting in as interim chair said the allegations “risk becoming a distraction to Tesco.”
“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,” Grote said.
“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.”
