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New Tesco Finance Director joins three months early


Tesco have announced that their new finance director, Alan Stewart, is to start work three months early.

The move comes after reports emerged that the company overestimated their profits for the last six months by £250m.

Alan Stewart has been the finance director at Marks & Spencer for the last four years, and had three months left on his contract before he was allowed to join Tesco. However, Marks & Spencer Chief executive, Marc Bolland has decided to allow Mr Stewart to terminate his contract early, following a personal appeal from Dave Lewis, who is the Tesco chief executive.

It has also been revealed that Tesco will not pay any compensation for the early release of Mr Stewart, as a spokesman for M&S said: "It was a request from Dave to Marc, we felt it was the right thing to do."

When Mr Stewart originally agreed to manage Tesco’s financial operations, he was set to work with Phillip Clark as his chief executive. However, Clark has resigned following the uncovering of a £250m black hole in Tesco’s finances, and Dave Lewis has replaced him.

Serious Issue

After Tesco uncovered a “serious issue” with their finances, four senior executives were suspended for overestimating their profits by £250m.

As a result, the price of shares in Tesco fell by 11% on Monday, and continued to fall even further on Tuesday.

Mr Stewart will now start working for Tesco with immediate effect, as the company look to investigate the mishandling of their finances. He has experience working in key financial positions, including time as the chief financial officer at both WH Smith and Thomas Cook.

He will be paid a salary of £750,000 a year, and will also receive a ‘golden hello’ of a minimum of £1.74m in Tesco shares.

It has also been announced that Tesco will delay the publication of their interim results by three weeks, so they will not be released until October 23.

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