Corporate Governance at Tesco
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Case Code: CGOX011 Case Length: 11 Pages Period: 2004 Pub Date: 2004 Teaching Note: Not Available |
Price: Rs.300 Organization: Tesco Industry: Retailing Countries: USA Themes: - |
Abstract Case Intro 1 Excerpts
Excerpts
Background Note
In 1919, Jack Cohen invested his serviceman's gratuity in a grocery stall in London's East End. He introduced his first private-label product, Tesco Tea, in 1924 - the name was the combination of the initials of his tea supplier (T. E. Stockwell) and the first two letters of Cohen's last name...
The Board of Directors
In 2002, Tesco's Board of directors (Board) consisted of eight executive directors and six independent non-executive directors. Tesco had separated the offices of Chief Executive Officer (CEO) and chairman of the Board to establish clear division of accountability and responsibility to operate effectively. The Board attempted to ensure that no individual or group dominated the decision-making process. The Board was responsible for approval of financial statements, major acquisitions and disposals, fixing authorization levels for expenditure, treasury policies, risk management, governance policies, succession plans for senior executives and corporate social responsibility (CSR)...
Board Committees
Tesco's Board operated the key governance structures with the help of various committees: Executive committee, Nominations committee, Remuneration committee, Audit committee and Compliance committee...
Compensation of Directors
The remuneration of the independent non-executive directors was determined by the Board as a whole on the recommendation of the executive committee after considering external market research. Independent non-executive directors had letters of appointment, and their appointment could be terminated by either party without notice. Each appointment was subjected to review every three years...
Exhibits
Exhibit I: Tesco: Financial Highlights
Exhibit II: Tesco: Board of Directors as on February 2003
Exhibit III: Tesco: Board Committee Membership as on 22 February 2003
Exhibit IV: Tesco: Director's Emoluments
Exhibit V: Tesco: Pension Details of Directors
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