Reply to: FCA to investigate Tesco after £250m accounting error

[CheeseSlice]

I wonder if Dodgy was a bullied supplier of contractors for Tesco

[darmstadt]

That is a serious allegation. I hope you can substantiate it.

Apparently he's got 2 references..

[Old Greg]

Of course he knew! It has been going on for 15 years.

That is a serious allegation. I hope you can substantiate it.

[DodgyAgent]

Sounds like he wasn't involved when the irregularities were introduced, so maybe he had nothing to do with it.

Though after working under Clarke for nearly 3 years, maybe he left a nasty gift in the books for his successors.... his version of a turd in the drawer.

Tesco admits Laurie McIlwee left in April - before £250m profit overstatement debacle | City A.M.

Of course he knew! It has been going on for 15 years.

[vetran]

Sharp?, making a 250 million error is not sharp. Execs fired left and right, this could be the end.

if it were just an error its unlikely they would be investigated.

At the same time the boss was leaving on high profits and it was bonus time.

Doubt it is the end, its a little hiccup, they may never get as good a share price but they will continue trading subject to sensible management as they are very efficient at what they do.

[Unix]

link

Yeah he sold the put to Goldmans, so GS have the right to sell to Ashley a the expiration date, which they will do if it drops below the strike, he is obliged to buy them.

[CheeseSlice]

Situation normal at the top.

Tesco finance director will receive £1m payoff | Business | The Guardian

Sounds like he wasn't involved when the irregularities were introduced, so maybe he had nothing to do with it.

Though after working under Clarke for nearly 3 years, maybe he left a nasty gift in the books for his successors.... his version of a turd in the drawer.

Tesco admits Laurie McIlwee left in April - before £250m profit overstatement debacle | City A.M.

Tesco was forced to admit last night that ex-finance chief Laurie McIlwee was not involved with the company during recent months when a £250m black hole appeared in its accounts.

The troubled supermarket also confirmed that Philip Clarke, its recently-ousted chief exec, had headed up an internal finance committee since April. The admission suggests that Clarke was largely responsible for Tesco’s accounts during most of the period when the profit over-statement is said to have occurred.

[pjclarke]

Tesco’s former finance director, Laurie McIlwee, is to receive a £1m payoff next week, even though the crisis-hit retailer is embroiled in a £250m accounting scandal. Although the investigation has only just got under way, McIlwee will be paid the cash as set out in his contract. He quit the business in April and was told to stay away from the office – a period when it appears the finances of the UK’s largest retailer spun out of control.
[...]
Despite his services not being required, McIlwee was paid more than £400,000 during a six-month so-called “transition” period after his resignation. That period ends next Friday. As of that date he ceases to be a Tesco employee and, in line with his contract, is entitled to a “termination payment” of £970,800, which takes in a year’s salary of £886,420 as well as other benefits including private healthcare and a car worth £84,460
[...]
To clear the path for the investigators, Lewis (new chief exec) suspended four senior executives, including Chris Bush, who runs Tesco’s domestic supermarket chain. The investigators likely to have questions for Clarke, who remains on the payroll until January when he too is entitled to a payoff of a year’s salary.

Situation normal at the top.

Tesco finance director will receive £1m payoff | Business | The Guardian

[SueEllen]

Is he selling the put? Buying put option means you make money if the share price drops.

link

[Unix]

Owner of Sports Direct, Mike Ashley, has a put-option that Tesco share price will rise. On the other hand Goldman Sachs has bet it's share price will fall.

Is he selling the put? Buying put option means you make money if the share price drops.

[SueEllen]

Owner of Sports Direct, Mike Ashley, has a put-option that Tesco share price will rise. On the other hand Goldman Sachs has bet it's share price will fall.

[Old Greg]

Leahy left at the right time. It was Leahy that initiated the bullying of suppliers. Phil Clarke merely continued with Leahys dodgy legacy.

Bullying suppliers, Dodgy? Goodness me!

[Martin@AS Financial]

Mike Ashley's Sports Direct takes a punt on Tesco's share price:

Mike Ashley's Sports Direct takes a punt on Tesco's share price | City A.M.

[SueEllen]

Ahh that explains why Tesco customer service is tulip. the staff would clock off the tills and go home even if the store had loads of customers waiting to be served. I've never seen this in any of the other supermarkets - in fact in Sainsburys when the same situation happened there was no issue with the staff being sure that they would get paid for the extra hours.

Maybe if Phil Clarke did the weekly family shop he would have been aware of things like this and would have also worked out that people don't want things like 10 different types of hummus a every ******* price point. And this is ignoring the sizes. The one thing Waitrose does at one end of the market and Lidl and Aldi at the other end also do, is limit choice on products like this.

[DodgyAgent]

Some think that ex-CEO Phil Clarke may have his fingerprints on this (CEO from 2011 until 1/9/2014).
Sounds like a complete clueless nutter too.

Tesco in crisis:
Tesco in crisis: ‘Phil Clarke’s legacy skulks around corridors like a bad smell’

Leahy left at the right time. It was Leahy that initiated the bullying of suppliers. Phil Clarke merely continued with Leahys dodgy legacy.