Fifth Tesco executive to step down

Commercial director understood to have been asked to step aside while chairman may resign

It’s understood that Richard Broadbent, non-executive chairman of Tesco Plc, would consider resigning once an investigation into the company’s accounting practices is complete. (Photograph: Brent Lewin/Bloomberg)

It’s understood that Richard Broadbent, non-executive chairman of Tesco Plc, would consider resigning once an investigation into the company’s accounting practices is complete. (Photograph: Brent Lewin/Bloomberg)

 

Tesco is understood to have asked a fifth senior executive to step aside as it investigates an estimated £250 million over-statement of its first-half profit.

The Financial Times said Tesco has asked Kevin Grace, commercial director, to step aside.

Meanwhile, the Wall Street Journal has reported this morning that Tesco chairman Richard Broadbent would consider resigning once an investigation into the company’s accounting practices is complete.

Mr. Broadbent would be willing to step down if the time was right, the newspaper said, citing sources, which indicated that he has hinted to board members that the right time for his departure might come after the accounting firm Deloitte LLP completes its investigation of profit overstatement.

Last month Tesco, the world’s No. 3 retailer, suspended its UK boss along with three other senior executives due to accounting mistakes in supplier contracts.