Tesco Plc Chair John Allan is stepping down days after he was linked to a growing scandal at Britain’s premier business lobby group.
Byron Grote, senior independent director, will stand in as interim chair until a successor is appointed, the UK’s largest grocer said in a statement Friday. Allan’s tenure was due to end shortly, the retailer said, and he will formally step down at the annual meeting in June.
The company said that four allegations had been made in relation to Allan’s conduct, in the wake of investigations into the Confederation of British Industry, the business lobby group.
Three were “vigorously denied” by Allan, the company said, and the other he had “unreservedly apologized” for.
Read more: Tesco Board Must Face Chair Questions Head On: Andrea Felsted
One of the allegations related to Tesco’s annual meeting in 2022. The grocer said it carried out an extensive review of the allegation and did not identify any evidence or complaints following the meeting.
Tesco also asked external counsel to consider the scope of its review — which also did not identify any evidence or complaints in relation to his tenure as Tesco chair, the company added.
Grote said that while there had been no complaints about Allan’s conduct, and the grocer had made no findings of wrongdoing, the allegations risked becoming a “distraction to Tesco.”
The CBI, which Allan led as president from 2018 to 2020, has been rocked by a scandal which saw two women make rape allegations against colleagues. The complaints against Allan were unrelated to these allegations.
Tesco stock was little changed in London trading.
(Updates with additional information throughout)
