Boss of UK's biggest supermarket, Tesco, steps down after profit warning

Philip Clarke, who is due to step down this autumn with a near-£10m package, will be replaced by Dave Lewis.

15:12 21 July 2014

Following yet another profit warning, it has been announced that Tesco’s CEO Philip Clarke will be standing down in October and walking away with a package of roughly £10m. He will be replaced by Dave Lewis, who leads Unilever’s personal care business and was described by Tesco as "responsible for a number of business turnarounds".

Philip Clarke's failure to halt slumping sales has led to the firm’s warning that sales and trading profits for the first half of the year would be even lower than expected. Just last month, the firm reported its biggest-ever decline in sales in over two decades due to its struggle to overcome the fierce competition spearheaded by rising discounters Aldi and Lidl.

Despite the profit warning, Tesco remained  the biggest riser on the FTSE100, reflecting City hopes for the new boss.

Meanwhile, according to advisory group Manifest, Clarke will be walking away with £9.6 million, which include his £1.1million salary and share awards. He will be paid another £1.1million for one year after his departure.

Clarke said: "Having taken the business through the huge challenges of the last few years, I think this is the right moment to hand over responsibility and I am delighted that Dave Lewis has agreed to join us."