David Reid Vows to Stay on as Tesco Chairman
To maintain the stability of the boardroom at Britain’s biggest retailer Tesco, David Reid has vowed to stay on as its chairman for at least another 18 months. Last week, the long-serving Chief Executive, Sir Terry Leahy said he would resign next year. It has been reported that Reid, 63, initially had decided to step down but now he has committed to stay.
Once Philip Clarke, the International Director, succeeds Leahy next March, David is tipped to remain for at least several months.
It has been anticipated by analysts that Tesco will officially start the hunt for Reid’s successor next year. They also think that Tesco will look forward for an independent chairman, bringing the retailer’s board in line with the finest corporate governance practice.
Because Reid was a former Executive Director of Tesco and sat on the retailer’s board since 1985, so he is not considered to be independent. He was prominent to the chairmanship in April 2004. The insiders of Tesco warned that no decision has been taken yet about the departure of Reid.
The news has come because J Sainsbury and Tesco are expected to disclose this week that UK sales growth has ground to a halt. First-quarter figures from both the corporations are inclined to be the weakest for five years as Britain’s supermarket groups undergo from a sharp fall in food price inflation as compared to last year.