Tesco to pay its former CEO and CFO more than £2 million
Tesco has agreed to pay more than £2 million owed to its former chief executive and former chief financial officer.
The supermarket said in a statement that it will pay liquidated damages contractually due to Philip Clarke and Laurie McIlwee of £1,217,000 and £970,880 respectively under their separation agreements as former directors of the company.
In October, Tesco said the payments had been suspended due to the investigation into the issues surrounding the supermarket’s misstatement of its profits by £263 million.
Tesco said in today’s statement: “The company is contractually committed to make the relevant payment to each former director unless it can legally establish a case of gross misconduct against him. The company has taken legal advice and has concluded that it does not have the basis for continuing to withhold the payments. Accordingly, the board considers that defending costly claims for the payments would not be in the company’s best interests.”
Tesco noted that the Serious Fraud Office is continuing to investigate the commercial income issue. It added: “If new information were to come to light which would change this assessment, the company will pursue recovery of the payments and damages and has fully reserved all its legal rights in this respect.”
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