// Tesco confirms new CEO Ken Murphy will start the role on October 1
// Outgoing CEO Dave Lewis has extended his current contract beyond when he was previously expected to leave
// Murphy’s start date had to be delayed due to his non-compete notice period with current employer Boots
The new Tesco chief executive will have to wait until October before starting after management at his current employer forced him to see out a non-compete agreement.
Ken Murphy, who is currently chief commercial officer at Walgreens Boots Alliance, had been due to start at the UK’s biggest grocer this summer.
However, Tesco confirmed it would now be October 1, with current chief executive Dave Lewis agreeing to stay on until Murphy arrives.
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“To facilitate a smooth and seamless handover, Dave Lewis has agreed to extend his tenure as group chief executive until September 30 2020,” Tesco stated.
Previously, Tesco chairman John Allan said last October: “We have appointed Ken Murphy to succeed Dave as group CEO of Tesco next summer.”
Companies typically put non-compete agreements into contracts to avoid rivals poaching their best talent.
Most non-competes last around 12 months from serving notice.
Asda chief executive Roger Burnley was forced to take time off before joining the supermarket, due to a non-compete clause in his contract with previous employer Sainsbury’s.
Tesco sources speaking to PA Wires insisted Murphy’s start date had never been confirmed.
They added that Tesco was known to enforce clauses on their own staff who are leaving.
The new boss, who will take home a basic salary of £1.35 million, was announced amid Tesco’s half-year results last year.
The board of Tesco decided against informing shareholders that the “thorough” search process had taken place until its completion.
with PA Wires
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