Marks & Spencer has suggested measures to defuse the bitter corporate governance row that erupted over the proposal to elevate boss Sir Stuart Rose to executive chairman.
In a letter to the Association of British Insurers, the retailer said that Rose will stand for re-election every year, beginning at this July’s AGM, will not take a pay rise and that a big-hitting non-executive director will be appointed to succeed Sir David Michels as deputy chairman and senior non-executive.
Last month, M&S revealed plans for Rose to become executive chairman from June 1 until his retirement in 2011 and effectively fired the starting gun on a succession race.
The proposed boardroom changes at M&S provoked a wave of protest from leading shareholders and City institutions, which feared that too much power was being concentrated in Rose’s hands.
Whether the compromise suggested by M&S will prove acceptable remains to be seen. However, despite their anger shareholders want an end to the dispute and many would be unhappy if Rose decided to quit in the face of opposition.
Last month, M&S revealed plans for Rose to become executive chairman from June 1 until his retirement in 2011 and effectively fired the starting gun on a succession race.
The proposed boardroom changes at M&S provoked a wave of protest from leading shareholders and City institutions, which feared that too much power was being concentrated in Rose’s hands.
Whether the compromise suggested by M&S will prove acceptable remains to be seen. However, despite their anger shareholders want an end to the dispute and many would be unhappy if Rose decided to quit in the face of opposition.
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