As John Allan prepares to step down from the leadership of Britain’s largest retailer, Tesco will launch a formal search for its next chairman in early 2023.
The largest retailer in the United Kingdom is about to launch a search for a new chairman, kicking off a competition to occupy one of the most prominent board positions on the FTSE-100.
Tesco is developing plans to begin the search for John Allan’s replacement, who will step down in 2024.
According to UK corporate governance regulations, Mr. Allan will be “timed out” in a little over a year, meaning that he will no longer be considered an independent chairman after nine years of service.
The search for his successor will be overseen internally by Byron Grote, the former chief financial officer of BP, who will leave the Tesco board of directors next year.
The process is scheduled to begin formally in the first half of 2023, according to sources from the City. External headhunters have been hired to assist with the search.
In recent years, Lygon Group, a search firm, has performed the majority of Tesco’s boardroom recruitment.
Mr. Allan, a former president of the CBI, has been an outspoken figure during his stint as chairman of Tesco, later stating that Labour is the only political party to have presented a viable economic growth strategy.
Last week, he attended a business event that featured presentations by Sir Keir Starmer and Rachel Reeves, respectively the Labour leader and shadow chancellor.
A year ago, he urged ministers to rapidly loosen visa requirements to prevent the possibility of Brexit-related supply chain disruptions.
Mr. Allan is also in the process of resigning as chairman of FTSE-100 homebuilder Barratt Developments, where the search for his replacement is more advanced.
Former chairman of Dixons Stores Group, now known as Currys, he has also served on the boards of 3i Group, Royal Mail, and Worldpay, among other British blue-chip corporations.
He was named chairman of Tesco during the greatest crisis in the chain’s history, which was precipitated by the discovery of an accounting black hole that generated genuine concerns about the company’s existence.
Mr. Allan joined the company as it tried to eliminate thousands of jobs, liquidate assets, and bolster investor confidence.
Together with the company’s then-CEO, Sir Dave Lewis, he was instrumental in stabilizing the company, supervising the sale of several big international operations, and regaining its market position in the UK.
In 2019, he handled the selection of Sir Dave’s successor, naming veteran Boots CEO Ken Murphy to succeed him.
Tesco’s domestic fortunes have steadily improved, and it is by far the largest grocery retailer in Britain.
Along with its competitors, it has been dealing with the effects of the epidemic and, more lately, the raging inflation that has gripped the British economy.
Its resurgence occurred during a moment of seismic industry change, with Morrisons’ performance deteriorating, the German discounters Aldi and Lidl expanding rapidly, and Asda being sold to the wealthy Issa brothers and buyout firm TDR Capital.
On Friday, Tesco shares finished at 227.9 pence, valuing the corporation at close to £17 billion.
