Tesco Regulatory News (TSCO)

Tesco PLC

2 June 2020

Alan Stewart, Chief Financial Officer, to retire from Tesco

We are today announcing that Alan Stewart has decided to retire as Chief Financial Officer of Tesco and leave the Company on 30 April 2021.

The Board will now conduct a thorough search both internally and externally to identify a successor.

Mr Stewart joined Tesco in September 2014 and, as a member of the Board and Executive Committee, has played an instrumental role in the turnaround of Tesco. He has led the corporate restructuring, rebuilt the balance sheet, guided Tesco back to investment grade and played a huge role in the financial transformation of the business in the last 6 years.

Dave Lewis, Group CEO, said: 'Alan has been an outstanding leader and partner at Tesco. He has made a huge contribution and on behalf of all of Tesco colleagues I would like to thank him for all he has done.'

John Allan, Chairman, said: 'Alan has made an impressive and sustained contribution both as CFO and as a Board Member to Tesco's turnaround. On behalf of the Board I would like to thank him for his continued contribution and, when the time comes, wish him well for the future.'

Alan Stewart, Chief Financial Officer, said: 'Being part of the team that has delivered the turnaround at Tesco and set it up for the next stage means an incredible amount to me. I shall continue to focus on delivering the strategy, supporting the business and my colleagues through the next 11 months, knowing that the business is in a strong position as we move forward.

Contacts

Notes:

Alan Stewart remuneration on retirement

Alan Stewart will receive basic salary and employment benefits through to his retirement. He will be considered for a bonus award for 2020/21 based on corporate and individual performance. Any awards will be 50% in cash and 50% in shares subject to a three-year deferral period. He will not be eligible for any 2021/22 bonus.

Mr Stewart has been granted good leaver status for his 2017/18, 2018/19 and 2019/20 deferred bonuses and his 2018, 2019 and 2020 PSP grants. These will be released on the scheduled vesting dates and, in respect of the PSP grants, to the extent performance conditions are met and after pro-rating for the portion of the performance period worked. Post vesting holding periods, where relevant, and malus and clawback terms apply. Mr Stewart has one year from his retirement date in which to exercise the vested options from his 2015/16 and 2016/17 bonus awards, 2015, 2016 and 2017 PSP awards and his 2014 and 2015 Buy-Out awards. A post-employment shareholding requirement applies for two years after departure in respect of share awards granted after 1 March 2019.

Good leaver status is conditional on Mr Stewart not taking up employment as a director, consultant or adviser with a list of retail sector competitors for a period of six months post his departure.

Other than as detailed above, Mr Stewart will not receive any other compensation or payment related to the termination of his employment.

LEI Number: 2138002P5RNKC5W2JZ46