Sir Terry Leahy to retire as Tesco boss
Robert Lindsay Sir Terry Leahy said today that he would leave Tesco after 14 years as chief executive to be replaced next March by Philip Clarke, his head of international operations.
Although there has been sporadic speculation about Sir Terry s departure, given his longevity in the post, the timing of the announcement was a surprise.
Tesco shares fell nearly 3 per cent or 11.6p to 395.5p in early trading.
Sir Terry, who will be 55 when he retires, said: When I became CEO I had a plan to build Tesco around its customers, to make it No 1 in the UK and to find new long-term growth in non-food, in services and in international expansion. I wanted to develop a purpose and values that could sustain Tesco through its challenges and encourage and grow future leaders.
It has taken 14 years but that strategy has become a firm reality now and so I feel my work is almost complete.
Tesco s choice of replacement was also unexpected. Tim Mason, the head of the retailer s Fresh & Easy stores in the US and Andrew Higginson, the head of retail services, which includes Tesco Bank and its internet and telecoms services, were seen as more likely successors. Mr Mason was last year the second highest-paid executive in the company.
Jonathan Pritchard, analyst at Oriel Securities, said: There may be some question marks as to Tim Mason s longevity at Tesco given he has been overlooked for the top job. He described Mr Clarke as solid and added: In the initial betting for Sir Terry s replacement, we would have made him third favourite.
Sir Terry said: I have worked with Phil at Tesco for many years and I am confident he has all the necessary talent, energy and experience.
Mr Clarke is a Tesco lifer who began work at the retailer as a part-time assistant in Liverpool in 1974. He joined the company s management training scheme after reading economics at the University of Liverpool. He said: I am honoured and delighted to succeed Terry, who has taught me so much.
Concerns were raised over succession planning at Tesco four years ago after the resignations of several executives, including John Browett and Dido Harding.
Tesco indicated then that Sir Terry would be at the company for at least another four years because he would be unable to collect the greater part of his long-term incentive plan which was geared to success in the US until then.
Last financial year Sir Terry was paid 5.2 million and sold shares worth 8.3 million. He has also amassed a 15 million pension pot. His long-term incentive plan could pay out up to 11.5 million from next year.
David Reid, the company chairman, said: Terry has made an unrivalled contribution over a prolonged period. He is undoubtedly one of the leading businessmen of his generation.
Related News
Photos
More>>
trade
- The Schaeffler Group and Henan University of Science and Technology (HUST) begin
- Hailin Bearing Company Donations For The Disaster Zhouqu
- President Hu stresses economic restructuring, agricultural production while
- CBIA Director-general Liu Enshi Visited Xiangyang Automobile Bearing Co.,Ltd
- NTN Signs an Alliance Memorandum in the Bearing Business with Luoyang LYC
market
- Wafangdian JinFeng Took Part In Shanghai Bearing and Equipment Exhibition
- Director of Bangladesh Ministry of Transport Visited Xiangyang Bearing Company
- Shanghai Rabbit Participated in the 12th China International Bearing & Equipment
- Chairman of China Machinery Industry Federation visited the Longxi Corporation
- Germany Customers Visited Xiangyang Automobile Bearing Co., Ltd
finance
- Three Products of CSC Received Authentication
- LDB Participated the 12th China International Bearing and Equipment Exhibition
- New Look of ZWZ in 2010 China International Bearing & Equipment Exhibition
- NTN Participated in the 12th China International Bearing & Equipment Exhibition
- New Look of Xinxiang Sunrise in 2010 China International Bearing & Equipment