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John Allan will stand down as chair of Tesco after allegations of inappropriate behaviour.
Allan, who has been chair of the UK’s greatest grocery store since 2015, will step down on the retailer’s annual normal assembly (AGM) on 16 June.
The announcement got here on Friday, 10 days after the Guardian reported that Allan allegedly touched the underside of a senior member of Tesco employees in June 2022, on the firm’s final AGM.
In an announcement, Tesco mentioned it had performed an in depth evaluation into the allegation referring to the annual assembly however had “not recognized any proof or complaints”in opposition to Allan.
Byron Grote, the senior impartial director at Tesco, mentioned: “Whereas now we have acquired no complaints about John’s conduct and made no findings of wrongdoing, these allegations threat changing into a distraction to Tesco.”
Allan mentioned the allegations had been “totally baseless” and that “I stay decided to show my innocence”.
4 allegations about Allan emerged in the course of the Guardian’s investigation into the Confederation of British Business (CBI) – the UK’s foremost enterprise lobbying group.
Allan was president of the organisation between 2018 and 2020 after which vice-president till October 2021.
He has denied three of the 4 claims made in opposition to him.
In addition to the allegation referring to Tesco, it was additionally claimed he touched the underside of a member of employees on the CBI throughout its annual dinner in Could 2019, when he was the organisation’s president.
Sources additionally alleged that Allan, 74, made inappropriate remarks on these events in addition to separate, related feedback to 2 different feminine members of CBI employees in November 2019 and in 2021 respectively.
Among the ladies mentioned they had been offended by the alleged actions and regarded his behaviour to be sexual harassment.
Allan has admitted making a remark a few CBI staffer’s look that she discovered to be offensive in 2019. Allan apologised for the comment after dialogue with the group’s then director normal, Carolyn Fairbairn.
In response to this incident, a spokesperson for Allan mentioned: “Mr Allan was mortified after making the remark in 2019 and he instantly apologised.”
After Friday’s announcement by Tesco, Allan issued his personal assertion.
It mentioned: “It’s with remorse that I’m having to prematurely stand down from my place as chair of Tesco plc following the nameless and unsubstantiated allegations made in opposition to me, as reported by the Guardian.
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“These allegations are totally baseless, as the inner procedures undertaken by Tesco show. Tesco undertook an ‘intensive inner evaluation’ which included inviting Tesco staff and ex-employees to return ahead on an nameless foundation if they’d considerations about my conduct.
“Tesco additionally performed outreach to those that attended the assembly the place the incident allegedly occurred, and video footage of the assembly has additionally been reviewed. There is no such thing as a proof of any wrongdoing at the moment or at any stage of my chairmanship at Tesco and I stay decided to show my innocence.”
Tesco mentioned in an announcement to the inventory market that Allan’s tenure as chair had been because of finish shortly and {that a} seek for his successor was initiated in current months, with the search because of conclude shortly.
The corporate mentioned it had not acquired any complaints about Allan’s conduct, both on the 2022 annual assembly or throughout his time as chair, and had not made any findings of wrongdoing.
The retailer mentioned it had instantly launched an “intensive evaluation” into the allegation about Allan’s conduct on the 2022 annual assembly. It mentioned it had requested colleagues to return ahead if they’d any considerations concerning his behaviour, contacted attenders of the assembly and had additionally contacted staff who had since left the corporate.
Tesco additionally mentioned it had reviewed video footage of the shareholder assembly, and had checked out data of inner complaints, together with from its confidential whistleblowing service.
Grote thanked Allan on behalf of the board for his contribution to Tesco throughout his eight years as chair, including that he had “efficiently led the board via the turnaround and Covid whereas serving to to rebuild the enterprise.”
Grote, who can also be the chair of the corporate’s audit committee, has been confirmed as interim chair by Tesco’s board, and can lead this yr’s AGM. He’ll maintain the position till a everlasting chair is appointed.
