Tesco has appointed John Allan as chairman, replacing Richard Broadbent.
Sources close to Tesco say John Allan was chosen partly because of his retail experience. However, it has been reported that some shareholders are unhappy with the decision and wanted ITV chairman Archie Norman to take up the post.
Richard Broadbent announced he would be stepping down from his position as chairman following the news that Tesco had overstated its profits by £263m. John Allan will be paid £650,000 a year, fixed for three years.
Tesco senior independent director Patrick Cescau said: “Following a deep and thorough process run by a committee of independent non-executive directors, the board unanimously agreed that John Allan was the right candidate to chair Tesco at this important time. On behalf of the board I would like to thank Richard for his work as chairman. He has served the business with unflinching commitment through a period of unprecedented change, and put in place a new senior leadership team for the next stage of Tesco’s development.”