Tesco has been forced pay a total of £2.1 million to its former chief executive and chief financial officer after admitting that it had no legal grounds to continue withholding the money from them.
Britain’s largest supermarket chain had announced in October that it was suspending payments owed to Philip Clarke, who was forced out last summer, and Laurie McIlwee, his finance chief who departed a few months earlier, amid an investigation into a £263 million accounting scandal at the retailer.
In a statement to the stock exchange today, Tesco said it had agreed to pay Mr Clarke almost £1.22 million and Mr McIlwee £970,880 “under their separation payments”.
Tesco said that, following legal advice, it concluded that it could not continue withholding the payments.