Abstract

Tesco is the UK’’s largest retailer. Tesco’’s businesses include convenience and gasoline retailing, small urban stores, hyper-markets and financial services. Tesco, which has a profitable on-line business, is one of the more globalised companies in the retailing industry. Tesco has committed itself to high standards of corporate governance by applying the principles set out in the Combined Code of the Cadbury and Greenbury committees. In late 2003, the company introduced changes in its board structure to facilitate the long-term development of board practices. The case examines Tesco’’s corporate governance practices, with special reference to board composition, board responsibilities, board committees, directors’’ compensation and shareholder relations. The case can be used for MBA students as part of the corporate governance curriculum. The case aims at helping students understand the processes and systems underlying good governance.

Learning Objectives

The case is structured to achieve the following Learning Objectives:

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Keywords

Tesco, Ethics, Corporate governance, Due diligence, Compliance, TE Stockwell, Cohen, Grocery stores, Retailers, Board of directors, Board committee, Directors emoluments, Shareholders relations, Performance-linked incentives, Share options