Ted Baker (TED) chief executive Ray Kelvin has resigned with immediate effect following recent allegations of misconduct by the clothing chain’s founder. Mr Kelvin – who has been on a leave of absence since December – denies all claims. Nonetheless, following an internal investigation conducted by law firm Herbert Smith Freehills, Mr Kelvin is leaving the company. Acting chief executive Lindsay Page will continue in this role, while David Bernstein will act as executive chairman.
Analysts at Liberum called Mr Kelvin’s departure "unfortunate but understandable", but believe there should be "minimal disruption" following the management change, as the board has acted "in a positive manner" and is left with "a strong team".
The Herbert Smith Freehills investigation will continue, focusing specifically on Ted Baker's policies, procedures and handling of complaints. It is expected to conclude by the start of the second quarter of 2019. Mr Kelvin will not be entitled to any salary or benefits related to his resignation or in respect of any period after the date of his resignation. Mr Kelvin's 2016, 2017 and 2018 long-term incentive plan (LTIP) awards will also lapse. However, Mr Kelvin's vested 2015 LTIP award, which vested over 19,873 ordinary shares in the company, will remain exercisable for a period of 12 months.
