Tesco Plc Chair John Allan is stepping down days after he was linked to a growing scandal at Britains premier business lobby group.
Byron Grote, senior independent director, will stand in as interim chair until a successor is appointed, the UKs largest grocer said in a statement Friday. Allans tenure was due to end shortly, the retailer said, and he will formally step down at the annual meeting on June 16.
The company said that four allegations had been made in relation to Allans conduct, in the wake of investigations into the Confederation of British Industry, the business lobby group.
Three were vigorously denied by Allan, the company said, adding that he had unreservedly apologized for the other a comment he made about a womans dress at an event in 2019.
One of the allegations related to Tescos annual meeting in 2022. The grocer said it carried out an extensive review of the allegation and did not identify any evidence or complaints following the meeting.
Tesco also asked external counsel to consider the scope of its review which did not identify any evidence or complaints in relation to his tenure as Tesco chair, the company added.
Grote said that while there had been no complaints about Allans conduct, and the grocer had not found any wrongdoing, the allegations risked becoming a distraction to Tesco.
Allan, who also chairs Barratt Developments Plc, released a separate statement in which he said it was with regret that he would prematurely stand down from Tesco. He said the allegations, which had been reported in the Guardian, were utterly baseless.
He added: I remain determined to prove my innocence.
The CBI, which Allan led as president from 2018 to 2020, has been rocked by a scandal which saw two women make rape allegations against colleagues. The complaints against Allan were unrelated to these allegations.
Tesco stock was little changed in London trading.
