Strategy & Operations » Governance » Tesco release £1m payout to former CFO McIlwee

Tesco release £1m payout to former CFO McIlwee

The former chief and CFO of Tesco pick up more than £2m in payouts, after Tesco's lawyers suggest it cannot hold them back

A £2m PAYOUT has been made to former Tesco CFO Laurie McIlwee and ex-chief Philip Clarke, after the lifting of a suspension on their severance payments.

The payments, worth £1m to McIlwee and £1.2m to Clarke, had been suspended as investigations continued into the accounting for commercial income at the grocery retailer that led to a £263m profit overstatement.

Both payments were released after legal advice, which concluded that it had no basis for continuing to withhold them, Tesco said in a statement on its website. “The company 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 Serious Fraud Office (SFO) and Financial Reporting Council are still investigating the circumstances surrounding the overstatement, while reports have suggested potential legal claims arising from the US.

“If new information were to come to light which would change this assessment, the company will pursue recovery of the payments and damages and has fully reserved all its legal rights in this respect,” it added.

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