A City analyst has said that the board of Tesco needs “more fundamental change” to include better succession planning after the resignation of the company’s finance director left chief executive Philip Clarke as the only permanent executive in the senior management team.

Clive Black, analyst at Shore Capital, said: “We see merit in Tesco having accountable executives responsible for the key markets again on its board, supporting and supported by the new CFO.

“Such a move would not only improve accountability, it would, to our minds, ease pressure on a CEO who most certainly has broad shoulders, cares about his business and carries responsibility.
“Additionally, we believe that such a board would enhance the scope for effective succession planning, which seems to be glaringly absent at present.”

Explaining the current board structure, chairman Sir Richard Broadbent said:  “The group executive committee rather than the board is now the focus of operational business oversight, allowing the board to focus on a more strategic agenda.”