Tesco pays £2.2m settlements to former CEO and CFO

3rd Feb 2015 12:00

Tesco said on Tuesday it has agreed to pay £2.2m to former directors after the payments have been suspended over an investigation into its accounting practices in the wake of an overstatement its profits by £263m.The FTSE 100 supermarket group has decided to pay former chief executive Philip Clark £1.217m and ex-finance chief Laurie McIlwee £970,880, as part of their contract terminations."The company has taken legal advice and has concluded that it does not have the basis for continuing to withhold the payments.Accordingly, the board considers that defending costly claims for the payments would not be in the company's best interests," the group said in a statement.It also added that the Serious Fraud Office continued to investigate into its accounting practices.