Patrick Cescau set to step down from Tesco board

Patrick Cescau, Tesco's senior independent director, is set to step down from the board, according to people familiar with the situation.

He would be the latest in a string of departures from the retailer's board in the wake of its £263m profit overstatement.

Mr Cescau is likely to step down next year, once he has led the search for a new chairman, following the announcement that Sir Richard Broadbent will leave, the people said.

Tesco declined to comment.

Tesco has always maintained that it was Sir Richard's decision alone to replace Philip Clarke as chief executive in July. However, people familiar with the situation have said that Mr Cescau was instrumental in the ousting of Mr Clarke ,after some investors expressed their concern about the chief executive's leadership of Britain's biggest retailer.

Mr Cescau is the former chief executive of Unilever, where he would have known Dave Lewis, who replaced Mr Clarke. Mr Cescau is also chairman of InterContinental Hotels Group.

His departure, first reported by The Times, would follow that of Ken Hanna, chairman of Tesco's audit committee, who is also expected to leave the board.

Sir Richard, Mr Cescau and Mr Hanna worked closely together on the Tesco board, according to two people familiar with Tesco.

The clear out comes after the appointment of two new non-executive directors, with Tesco drafting in Richard Cousins, a turnround specialist who runs catering group Compass, and Mikael Ohlsson, a former head of Ikea.

Mr Cousins had been widely regarded as a potential candidate to replace Sir Richard as chairman, but recently ruled himself out of the race.

Tesco has been plunged into turmoil following the announcement in September, that its first half profits had been overstated by £250m. It announced a month later, that the overstatement was in fact £263m.

The company has suspended eight senior managers, known as the Cheshunt Eight after Tesco's head office north of London.

The FT revealed last week that Tesco had parted company with at least three of those asked to step aside - Kevin Grace, group commercial director; John Scouler, UK food commercial director; and Carl Rogberg, UK finance director.

On Monday, Tesco announced a shake-up of its senior management, with Mr Lewis taking control of the day-to-day running of the retailer's UK business, which still accounts for two-thirds of group sales and profits.

As part of this shake-up, Chris Bush, who had been UK managing director, and was close to Mr Clarke, will not be returning to Tesco, according to people familiar with the situation.

Matt Simister, one of the Cheshunt Eight and responsible for group sourcing, has been reinstated into his role, however.

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