Tesco chiefs trouser £2.2m pay-off

Tesco has coughed up over £2m in “golden handshakes” to former chief executive Philip Clarke and finance boss Laurie McIlwee, after concluding neither could be charged with gross misconduct on the back of its accounting cock-up.
Clarke, who will receive £1,217,000 and McIlwee who will trouser £970,880, had had their payouts suspended following the investigation into a huge hole in Tesco finances, first estimated to be £250 then revised up to £263m.
Both were ousted last year; McIlwee’s was the first head on the block in April, when was told to stay away from the office – a period when it appears the finances of the UK’s largest retailer spun out of control.
Clarke followed in July and was swiftly replaced by Dave Lewis, who then uncovered the accounting mess.
In a statement, the retailer said: [Tesco is] contractually committed to make the relevant payment to each former director unless it can legally establish a case of gross misconduct against him.
“The company has taken legal advice and has concluded that it does not have the basis for continuing to withhold the payments. Accordingly, the board considers that defending costly claims for the payments would not be in the company’s best interests.”
Tesco said that an accounting probe by the Serious Fraud Office was ongoing and that it would look to recover the payments if new information came to light that changed its assessment.

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