So how should Tesco choose its directors?

What are we to make of Tesco’s problems, which have seen four million pounds disappear from its market value and the suspension of four senior executives?

I think the answer must clearly be that its corporate governance systems are laughably amateurish.  All those non-executive chaps and chappesses (well, just two of the latter, to be honest) with their strings of other non-exec positions.  Gwyn Jones, for example, who (so Tesco’s website tells me) is also a director of HBO & Co. (UK) Ltd, INVESCO English and International Trust plc and has ‘interests’ in media and technology. Lady O’Cathain who is also a non-exec director of  British Airways plc, BNP UK Holdings Ltd and Thistle Hotels plc. John Gardiner who is Chairman of Laird Group PLC and a non-executive director of 3i Group plc. And etc etc.

The trouble is that these people obviously have no idea how to handle CEOs or strategically manage a major retail business.  I think we need a root-and-branch overhaul of the way that Tesco’s board of directors are chosen.  Perhaps Tesco’s customers could have a say.  I’m thinking of asking Lord Myners to offer some advice.

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