The Members of the Board of Directors of Tesco Corporation consists of persons that meet the standards of independence required of TESCO by law, regulations and the stock exchange listing requirement. The board is responsible for the management of the business and affairs of TESCO. It oversees the stewardship of TESCO and its operations. The board oversees the executive management of the company, which includes the daily operations; reviews the identified principal risks; and review the systems designed to manage these risks. Currently, the board consists of 16 members. The qualifications, experience, and the suitability of the members in discharging their duties, is highlighted here-in.
David Edward Reid (63): The Non-executive Chairman
He became the Non-executive Chairman on 2 April 2004. He has been in the Tesco Board since 1985. He was the Deputy Chairman of Tesco PLC before his appointment. David is a Non-executive Director of Reed Elsevier Group PLC and Chairman of both Kwik-Fit Group and Whizz-Kidz.
David Reid qualified as a Chartered Accountant in 1970 with Peat Marwick Mitchell after his Fettes College and Aberdeen University education. His wealth of experience and the vast qualifications makes him an invaluable asset for this company.
Mr. Patrick Jean-Pierre Cescau (61): The Senior Independent Director
Patrick Cescau became a Non-executive Director on 1 February 2009. Prior to this appointment, he was the Group Chief Executive of Unilever from 2005 to 1 January 2009. He was also the Chairman of Unilever plc and Vice Chairman of Unilever NV. Since 2002, he has been a Non-executive Director of Pearson plc. He was appointed a Chevalier de la Légion d’honneur in 2005, and in June 2009, he joined the Board of INSEAD.
He graduated with a Business Degree from ESSEC. Currently he holds a Master’s degree in Business Administration from INSTEAD. His qualifications and experience have prepared him for this position. He is indeed very competent in discharging his roles.
Mr. Philip A. Clarke (49): The Group Chief Executive
On 16th November 1998, Philip Clarke was appointed to the Board and in March 2011, he was appointed as the CEO. Prior to this appointment, he was the International & IT Director. He has been actively committed in various roles in commercial and marketing, and in store operations.
He is an economics specialist who studied economics at Liverpool University and joined Tesco as a graduate trainee where he worked as a store manager, buyer, and marketer. He is extremely fit in discharging his duties due to his experienced academic qualifications.
Mr. Richard W. P. Brasher (48): CEO – UK & ROI
He joined Tesco in 1986 and was appointed to the Board on 15th March 2004. Before his appointment, he held various positions in marketing, commercial and store operations. He was the Board Commercial Director before his appointment as the UK CEO in March 2011.
Mr. Brasher graduated in 1983 with a Degree in Food Technology. He is fit for his position considering his experience and qualifications.
Mr. Andrew T. Higginson (52): The CEO – Retailing Services
He was appointed to the board on 17th November 1997. He has been the Chief Executive Officer of Retailing Services since 2008. He also serves as a director of strategy. His main responsibility is the retailing services for Tesco Direct, tesco.com, and Tesco Telecoms. He is the Chairman of Tesco Bank and a Non-executive Director of BSkyB plc. Previously, he served in various positions in various companies including Unilever and Guinness. He is a Member of the 100 Group of Finance Directors and the Financial Reporting Review Panel. He is very fit for this position.
Tim Mason (52): The Deputy Group CEO and CEO Fresh & Easy
He was appointed to the board in 1995 after he Joined Tesco in 1982. He became the Deputy Group CEO in March 2011, after being the President and Chief Executive Officer, Fresh & Easy Neighborhood Market since January 2006. He is very competent in fulfilling his duties due to his wide range of experience.
Laurie McIlwee (47): The Chief Financial Officer
Laurie McIlwee joined Tesco in 2000 as the Finance Director, UK, and in 2005, he became the Distribution Director. He was appointed to the Board on 27th January 2009. Laurie is a well experienced Chartered Management Accountant. He is very qualified and with enough experience.
Lucy Neville-Rolfe CMG (57): Executive Director (Corporate & Legal)
She joined Tesco in 1997 from a Cabinet Office and was appointed to the Board on 14th December 2006. She is currently the Deputy Chair of the British Retail Consortium. She is also a Non-executive Director of ITV plc and the Carbon Trust. She is a member of various councils including the China Britain Business Council, the UK India Business Council and the Corporate Leaders Group on Climate Change. With her wide experience, she is fit for her position.
David Potts (52): CEO – Asia
David Potts joined TESCO in 1973 and was appointed to the Board on 16th November 1998. He worked as the integration director in the Republic of Ireland and Northern Ireland between 1997 and 2000. He then assumed the position of Director for UK Retail Operations in 2000. He was in-charge of Republic of Ireland and the UK Supply Chain before his appointment as the CEO - Asia in March 2011. His experience prepared him for this position.
The Non-executive directors include Gareth Bullock - 56, Stuart Chambers - 54, Karen Cook - 56, Ken Hanna -56, Ken Hydon - 65, Jacqueline Tammenoms Bakker - 56, and Jonathan Lloyd - 43, the Company Secretary. All these members have met the qualifications and the standards of independence required of TESCO by law, regulations and the stock exchange listing requirement.
Corporate Governance and the Legal Requirements
The company normally works with the local communities in all its global operations. This has provided employment and services to the locals. It also supports the local communities through engaging in various activities as discussed here-under. Tesco believes in society, dependency, and togetherness. The Group always supports individuals. At the same time, it has made major contributions to the society. Tesco offers quality products at affordable prices as it employs thousands of the locals in every place it operates.
The core value of Tesco is to act responsibly for the communities, as the positive contribution made to the community is to the benefit and success of the company. The company believes that community actions is very meaningful, and have positive impacts if the local peoples are involved. The company has heavily invested in delivering the services locally. This has been achieved through community fairs, community awards, community notice boards, and local educational programmes. Tesco approaches the issue of communities through employing the local staff who understand the local needs of the people and are dedicated towards addressing the issues.
The company gave a charity of 1% pre-tax profits across the group in 2010, while in 2009; it contributed approximately 1.94% (£61.6 million) to realize the same. Schools programmes and national sponsorships are incorporated in the Charity of Year strategy. Such programmes include the cooperation with the Cancer Research UK on Race for Life. There is also emergency partnership with the Red Cross which greatly helped the communities and individuals in Indonesia, Haiti, Vietnam, Cockermouth, and the Philippines to withstand disasters.
Recently, the company donated £50,000 which was used in helping the Haiti Earthquake victims. It also helped in raising an additional £400,000 through a nationwide store collection and Clubcard customer donation scheme. The Little Seedlings Club which was launched in April 2009 provides free help on workshops. This helps in teaching children on the environment, plants, and wildlife. The Home plus eParan Foundation which was launched in South Korea in September 2009 helps in delivery of initiatives around the environment, communities, neighborhoods, and the family.
The company has worked with the Gangmasters Licensing Authority (GLA) in order to develop the standards that can address the various challenges associated with the use of agency and migrant labour. In 2009, the company identified that children were used to collect mineral mica in north India, which was used in production of cosmetic products. This problem was solved immediately after the intervention of Tesco. The company believes that child labor is unacceptable and must be completely eliminated. Tesco ensures that its suppliers are very transparent about the conditions for workers. The understanding of the working conditions and the labor standards within the supply chain is a very vital part of Tesco strategy. With regard to corporate governance, the company fulfills its legal requirements.
The Environmental Policies
The role of TESCO Company, as a global business, is very important as far as the environment is concerned. The company’s environmental policies aim at minimizing the climatic changes. By 2050, the company wants to be a zero-carbon business. It also aims at reducing the emissions of its products by 30% in 2020; helping the customers and stakeholders in reducing the carbon footprint by half in 2020; halving the emissions from the 2006/7 baseline portfolio buildings by 2020; and reducing the emissions per case delivered by half in 2012.
The company believes that climatic change is one of the greatest threats that currently face mankind. The company also believes that retail trade plays very important roles when it comes to the issue of the environment, and it is determined in playing its part. The company has started reducing its direct footprint as it aims at moving towards becoming a zero-carbon business.
The company has short, medium, and long term strategies that will definitely rescue the environment. The company is leading by example. Across the Group, there has been a 7.8% reduction of emissions from the 2006/7 baseline portfolio of stores and distribution centers this year. A new environmental store format has been developed which has aided towards the achievement of a 28.8% reduction in carbon emission. The carbon emission is summarized below.
CO2e Emissions per square foot
CO2e by Case of Goods Delivered
Financial statements are very important to shareholders. These statements show the performance of the company within the given period and can be used by potential shareholders to evaluate the success of the viability of the company. Tesco has always made detailed financial statements which are very important to the shareholders. Let’s consider the statement below.
From the above statement, shareholders can easily tell the performance of their shares in Tesco Company. The public can also evaluate the performance of the company and assess its viability.
Considering the 2009 financial statements given below, it is evident that the company provides the right information to shareholders.
This statement contains all the major financial details that shareholders may need regarding the performance of the company.