M&S chief Rose fails to pacify City critics
MARKS & Spencer boss Sir Stuart Rose won over small shareholders yesterday but left sections of the City deeply critical of his controversial dual role as chairman and chief executive.
The company’s army of private investors turned out in force to back Rose at a packed annual meeting just days after M&S shares plunged on a shock profits warning.
Although nearly four-fifths of M&S shareholders supported his reappointment to the newly created dual role, critics said the result showed unease among key investors.
Rose won the support of 77.9 per cent of those who voted, while 4.8 per cent opposed his appointment and 17.2 per cent withheld their vote.
The Association of British Insurers said the vote “indicates a discernable level of unease” and shareholder advisory body PIRC said it showed investors had serious reservations.
“We urge the company to revert to separate chair and chief executive roles as soon as is practicable,” said PIRC managing director Alan MacDougall.
We urge the company to revert to separate chair and chief executive roles as soon as is practicable.
Despite concerns raised by City funds about the concentration of power in Rose’s position, none of them spoke up at the meeting.
Deputy chairman Sir David Michels said the board was unanimous in appointing Rose and added: “He’s got the right skills to take M&S forward and complete the job he started.”
Rose said: “I believe it is the right thing to do. When my job is done I will go.”
The meeting, at London’s Royal Festival Hall, was at the same site where, in 2004, shareholders rebuffed a £9billion bid approach from Bhs owner Sir Philip Green. Since then, the annual meeting has become something of a love-in between Rose and shareholders.
This was no exception, and he was warmly applauded, although a string of critical questions about the share price performance and the company’s policy of buying back its own shares hinted that the ardour had cooled.
In a break from recent tradition, Rose skipped his market-trader style routine of showing off some of the chain’s latest fashions.
He said: “I believe we are in good shape but we are not immune to the market.”