Marks & Spencer chief finance officer Alan Stewart is stepping down from the retailer to join Tesco.

Stewart, who joined M&S in 2010, has stepped from the board and will leave M&S with terms still to be agreed.

Stewart has been appointed Tesco chief financial officer, succeeding Laurie McIlwee, who announced his resignation in April.

Tesco chief executive Philip Clarke said: “When we set out on this search we wanted a candidate who had the right blend of experience, leadership and values to play a leading role in the transformation of Tesco. We have found all three in Alan. I am looking forward to working alongside him and I know Tesco will benefit from the breadth and depth of his experience.”  

Tesco chairman Sir Richard Broadbent added: “I am delighted to welcome Alan to the Board of Tesco which will benefit from both his substantial retail experience and financial expertise.”

The grocer revealed Stewart will receive a basic annual salary of £750,000 plus benefits. Additionally, he will be awarded shares of £1.737m in lieu of his deferred share awards from Marks & Spencer which he will forfeit when he joins Tesco.

The revelation comes two days after M&S’ AGM when the department store retailer posted a 0.3% like-for-like increase in the first quarter. But sales from the retailer’s relaunched website fell 8.1%,while total group sales fell 2.3%.