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."
Help test our new apparel sourcing tool.
Sri Lankan textile manufacturer South Asia Textile Industries is to invest LKR1bn (US$7.1m) in an expansion programme that will see it add new machinery to bring "a completely new dimension in textile...
- Using worker surveys to drive supply chain change
- Rana Plaza four years on – Timeline of change
- Trump and Brexit get a dose of pragmatism
- No US rush to Myanmar despite end to sanctions
- Where does VF supply chain sit in growth strategy?
- Amazon wins on-demand apparel manufacturing patent
- Driving ban intensifies Myanmar logistics hurdles
- Trump bolsters "buy American" with executive order
- Inditex, Adidas and Patagonia top ethical report
- Calls for supply chain transparency standard
- Global market review of denim and jeanswear – forecasts to 2022
- When Things Go Wrong - A Practical Guide to Managing Common Problems in Apparel Sourcing
- Myanmar - ISA Country Report
- Southeast Asia strategic sourcing review – a focus on Cambodia, Vietnam and Myanmar
- Clothing Market in the Top 5 American Countries to 2021 - Market Size, Development, and Forecasts