Tesco chair steps down in wake of inappropriate behaviour claims

Tesco chair John Allan will step down after the company’s AGM next month, after he was accused of inappropriate behaviour towards women.

Last week, allegations emerged from four women that 74-year-old Allan, who has been head of Tesco’s board since 2015, had behaved inappropriately towards them.

He had allegedly touched the bottom of a senior Tesco employee at the company’s AGM in June 2022. He had also similarly touched a female Confederation of British Industry employee in May 2019 at the lobbying group’s annual dinner and made inappropriate comments to two others, it is claimed, in 2019 and 2021.

According to a report in the Guardian earlier this month, Allan “vigorously denied “ three of those claims, but admitted to the other, relating to comments made about a female staff member at the CBI while he was president of the lobby group. He was said to have “unreservedly apologised” for those comments.

Allan had said he accepted he told the woman that a dress “suited her figure”, but said it was a “misjudged way of seeking to cheer someone up”.

Allan was president of the CBI between 2018 and 2020 and vice-president until October 2021.

Regarding the allegation that Allan had touched the bottom of a female Tesco employee, the retailer said it had “instigated an extensive review of the allegation”, which “has not identified any evidence or complaints in relation to John”.

Allan will be replaced after the forthcoming Tesco AGM by senior independent director Bryan Grote, who will become interim chair.

Grote said: “John has made a valuable contribution to Tesco during his eight years as Chair. He has successfully led the board through the turnaround and Covid whilst helping to rebuild the business.

“While we have received no complaints about John’s conduct and made no findings of wrongdoing, these allegations risk becoming a distraction to Tesco. On behalf of the board, I thank him for his substantial contribution to the business. We are well advanced in our search for a new chair and will make an announcement in due course.”

Tesco added that it had already begun succession planning because Allan had been set to step down shortly anyway.

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The CBI and its leadership have been subject to a number of allegations of misconduct in recent months. Director general Tony Danker was dismissed in March.

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