Tesco adds "much needed experience" to board
The two directors will join Tesco on 1 November
Tesco has appointed two non-executive members to its board of directors, adding what analysts believe is much needed international consumer market experience for the struggling supermarket group.
Richard Cousins, CEO of Compass Group since 2006, will join the Tesco board on 1 November. As will Mikael Ohlsson, the former CEO and president of Ikea. Ohlsson is also a non-executive director of Volvo Car Corporation, Ikano, and Lindengruppen.
"I am delighted to welcome Mikael and Richard to the board and know that their broad skills and experience will be a real asset to the company in the coming years," said Tesco chairman Sir Richard Broadbent.
"Mikael and Richard have been updated on and are wholly supportive of the steps being taken by the new management team to rebuild trust in Tesco and to focus all the resources of the business to deliver value to our customers."
ShoreCap analyst Clive Black believes the appointments are particularly significant given the "near comical series of events that has materially tarnished the reputation of the company and served to materially de-rate the group's stock".
Tesco is currently under investigation by the UK's Financial Conduct Authority (FCA) after the retail behemoth revealed a GBP250m (U$408.1m) profit overstatement in its first-half accounts.
Tesco suspended four senior executives over the issue, one of those being Chris Bush, the head of its UK business. As a result, it brought in its new CFO Alan Stewart and CEO Dave Lewis, early.
Black added: "Non-executive directors rarely put pennies into the tills but in this instance we welcome the joint appointments and hope that it represents the recommencement of more effective governance of Tesco.
"In this respect we see scope for further work embracing a larger executive component on the board in time, an evolution of the present non-executive team and the appointment of an appropriate chair person."
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