Clarks CEO Mike Shearwood exits after misconduct probe

Clarks Chief Executive Officer of two years, Mike Shearwood has left the business after the company conducted an internal investigation into complaints about his conduct, reports Bloomberg.

The company began probe into the matter after receiving complaints over his behaviour. However, it was not revealed that in which areas of its 23-page Code of Business Ethics that Shearwood was found guilty. Meanwhile, the company has appointed Stella David, formerly the company's senior independent director, as Interim Chief Executive Officer, effective immediately.

Clarks CEO resigns amid conduct investigation

The report added quoting an email from the company spokesperson: “Clarks recently learned that aspects of Shearwood’s conduct, conversations and expressions fell short of the behaviours expected of all its employees on a number of occasions. The board has accepted Shearwood’s resignation.”

According to BBC, Shearwood had joined the company from Karen Millen where he also served as chief executive officer. He had joined at a time when former CEO Melissa Potter and finance director Robin Beacham had left the company following a sharp decline in its full-year profits. Last April, the company reduced several positions in the UK and overseas, including 60 job cuts at its Somerset head office.

Founded around 200 year ago in 1825, by Cyrus and James Clark, the Somerset-based company operates 553 stores in Britain and Ireland and around a 1000 stores in other countries. For the year to January, Clarks recorded a fall in profits to 45.2 million pounds (59.8 million dollars) against 63.7 million pounds (84.2 million dollars). Clarks’ sales for the year also declined to 1.5 billion pounds (1.9 billion dollars).

Recently, sportswear major Nike saw a string of senior level departures after the company started investigating workplace behaviour complaints. Almost 11 executives quit the company amid allegations of harassment and discrimination against female employees.

Picture:Clarks UK website