Marks & Spencer is to portray Sir David Michels, its most senior independent director, as a “corporate bruiser” in an attempt to win over shareholders worried about the retailer’s new boardroom structure, according to The Daily Telegraph.
The campaign, which will continue this week, follows growing investor criticism of M&S’s corporate governance after last week’s announcement that chief executive Sir Stuart Rose will become chairman while retaining his existing position.
Under the management changes, Michels, a former chief executive of the Hilton Hotels group, will become deputy chairman and senior non-executive director on the M&S board.
Legal & General Investment Management, M&S’s second largest shareholder, criticised the retailer for the move, while Threadneedle, Royal London Asset Management and the Co-operative Investments were thought to be concerned.
A source told The Daily Telegraph: “The issues for the board are that they hold the executive to account and if they think [Sir] Stuart is no longer the right man for the job that they have the guts to sack him. Anyone who knows [Sir] David Michels knows he is a corporate bruiser.”
M&S unveiled its plans for Rose last Monday and said he would stay with the retailer until 2011.
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