Gerry Murphy, the current Chairman of Burberry, has been appointed as the Chairman of Tesco, starting from September. This decision comes after former Chairman John Allan stepped down from his position following personal misconduct allegations, which he vehemently denies. Allan voluntarily left Tesco in May to prevent any further disruption to the business. Murphy expressed his confidence in Allan’s leadership, stating that he left the company in an excellent state for the future.
Murphy’s impressive reputation and extensive experience have made him an appealing choice for Tesco. He previously served as the head of Kingfisher and is currently the Chairman of ingredients giant, Tate & Lyle. However, he will step down from his role at Tate & Lyle in September to fully dedicate himself to his new position at Tesco. His departure from Burberry, though, will not affect his position on the board.
Throughout his career, Murphy has held various leadership roles, including working at private equity firm Blackstone and serving on the boards of Abbey National, British American Tobacco, and Reckitt Benckiser. He has also been CEO of Carlton Communications and Greencore, a prepared foods specialist. However, in recent years, he has primarily focused on non-executive roles.
Analysts and investors are expected to react positively to Murphy’s appointment, as they appreciate his extensive experience and proven track record. Murphy’s background in the fashion industry as the Chairman of Burberry is seen as an added asset, considering that Tesco is not only the largest supermarket in Britain but also a significant fashion retailer through its F&F range.
Allan’s departure from Tesco was originally scheduled within the next 12 months as part of the company’s succession planning. However, the misconduct allegations accelerated his exit. Even though Allan denies any wrongdoing, he believed it was best to leave the company rather than allow the claims to disrupt its operations. With Murphy taking on the role of Chairman, Tesco can confidently move forward and continue to thrive in the highly competitive retail industry.
Links:
1. Tesco Website
2. Burberry Website
