Tesco names City grandee as new chair

TESCO yesterday announced that Sir Richard Broadbent will become its next chairman.

Sir Richard (pictured), who is deputy chairman at Barclays, will join Tesco as a non-executive director in July.

He will take over the reins from Tesco chairman David Reid, who retires in November.

The City grandee was tipped to take over at insurer Aviva before opting to take up the challenge at Tesco.

The chairman-elect described Tesco as an “innovative and growing global business”. “I look forward to working with a great team and playing my part in helping guide Tesco to further success in the future,” said Sir Richard.

The 58-year-old, who is in his third term at Barclays after joining the board in 2003, would also have been a strong candidate to take over as chairman of the bank.

He began his career at the Treasury in 1975 after studying at the University of London and the University of Manchester.

He went to Schroders in 1986 and rose to head of corporate finance, working closely with Sir Win Bischoff, who was then chairman.

In 2000, under then Prime Minister Tony Blair, he was the first non-civil servant to serve as permanent secretary of customs and excise.

Reid first joined the board of Tesco in 1985 and has been chairman since March 2004.

He has also held the roles of finance director and executive deputy chairman during his career at the retailer.

Tesco, which has more than 5,000 stores in 14 countries, posted a 14 per cent rise in net profit last year.

Reid, who became chairman of the supermarket in 2004 and has served on the Tesco board since 1985 in an executive role, said: “I am sure that with Richard’s wide expertise, his board experience and his personal qualities he will contribute greatly to the future growth of the group. Good management succession is very important to Tesco and this appointment is the result of a thorough process led by Patrick Cescau and endorsed by all members of the board.”

The move completes an all-new line-up at the top of Tesco. Phil Clarke replaced Sir Terry Leahy as chief executive earlier this year.