Shares in supermarket giant Sainsbury’s (LON:SBRY) fell on on Monday, after the board reprimanded chairman David Tyler for using the chain’s staff and suppliers to redecorate his country home.
Tyler, who has held the position of chairman since 2009, was sent a warning letter by the board after it was found that his actions constituted “material breaches” of three company policies. However, no further action was taken.
Tyler’s actions were first revealed by the Guardian and took place in 2013, involving the use of Sainsbury’s staff and materials to install and underfloor heating system at his house in East Sussex.
In addition to the warning letter, in which the supermarket called his actions an “extremely serious matter”, Tyler paid £5,000 to charity as compensation for the work done by staff.
Sainsbury’s said in a statement: “This is a historical issue dating back to 2013. The chairman volunteered the information and the board conducted a thorough investigation in line with company policy, as they would with any other colleague in the same circumstances.”
“As a result of the investigation, the chairman was given a warning but the board concluded that his failure to comply with company policy was unintentional, that he did not act dishonestly and made no financial gain.”
Tyler has extensive experience at board level and is also chairman of property developer Hammerson, as well as a board member of Domestic & General warranty group.
The investigation by the supermarket concluded that Tyler had breached the company’s code of ethical conduct, with Tyler acknowledging that “he was aware of the general spirit of the policies – though not all the details within them.”
Sainsbury’s shares are currently trading down 1.16 percent at 259.64 (1051GMT).