Kevin Grace was asked to step down in October 2014, and was given only four days’ written notice in a letter accusing him of “remaining silent” about accounting issues and being “culpable to a high degree”, according to the Mail on Sunday.
At the time, the supermarket was at the centre of an accounting scandal after it admitted it had overstated its profits by £362m. This led to investigations by the Serious Fraud Office (SFO) and the Financial Reporting Council.
The SFO later charged former managing director of Tesco Christopher Bush, ex-UK finance director Carl Rogberg, and former UK food commercial director John Scouler, with one count of fraud by abuse of position and one count of false accounting stemming from their roles in the accounting scandal.
Prosecutors said Grace would not be facing fraud charges despite being accused by Tesco of “serious negligence and gross misconduct”, the Mail reported.
Grace is suing the supermarket for £635,807 for his loss of salary and benefits since 2014, plus interest.
A Tesco spokesperson said the group was aware of the case and intended to “strongly defend it”.