Tesco chief executive Philip Clarke is to exit the supermarket after a fresh profit warning from the company.
Clarke will be replaced by Dave Lewis, head of Unilever’s personal care division, on October 1, although he will continue to support the transition until the end of January 2015.
The news comes as the retailer said sales and trading profit in the first half of the year were “somewhat below expectations.”
Sir Richard Broadbent, chairman at Tesco, said it was the “appropriate moment to hand over to a new leader with fresh perspectives and a new profile”.
He continued: “Dave Lewis brings a wealth of international consumer experience and expertise in change management, business strategy, brand management and customer development. He is already known to many people inside Tesco, having worked with the business over many years in his roles at Unilever.”
Lewis will receive a basic salary of £1.25m and “standard benefits commensurate with his position”. He will receive a sum of £525,000 in lieu of his current year cash bonus from Unilever and he will also receive restricted Tesco awards of an undisclosed equivalent expected value in lieu of his deferred share awards from Unilever.
The company said Clarke will receive his current salary and benefits for the six-month transitional period. Afterwards, he would receive a sum equivalent to his contractual entitlement based on 12 months’ salary in lieu of notice.
Tesco will publish the result’s of its first half- the six months to the end of August- on October 1, the day Lewis joins the company.