Tesco FD on receiving end of shareholder criticism
Tesco management under fire as shock central Europe profit slump questioned
TESCO’s MANAGEMENT, including FD Laurie McIlwee, have come under fire as the retailer shocked investors over its travails in central Europe.
A number of Tesco’s biggest shareholders, speaking to the FT, questioned how they had been kept in the dark over the slump in its central European profits – 68% lower – which dragged its interim profits down for a third year and saw analysts cut forecasts.
One shareholder said it was “legitimate to ask were there people at the centre aware that things were not going to plan, and if they were, should it have been communicated?”
Others narrowed their criticism towards Tesco FD Laurie McIlwee, describing him as “abrasive” and “not that well liked”.
“Tesco should have a world-class chief executive and a world-class finance director. People are worried about their management strength,” said another.
But David Herro, chief investment officer of hedge fund Harris Associates, said management needed more time to turn the business around.
Tesco declined to comment.