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M&S chairman facing his critics | M&S chairman facing his critics |
(21 minutes later) | |
Hundreds of shareholders have gathered for Marks and Spencer's AGM, marking a key test for executive chairman Sir Stuart Rose regarding his leadership. | Hundreds of shareholders have gathered for Marks and Spencer's AGM, marking a key test for executive chairman Sir Stuart Rose regarding his leadership. |
The most controversial motion being debated has been presented by the Local Authority Pension Fund, as it seeks a new independent chairman by July 2010. | The most controversial motion being debated has been presented by the Local Authority Pension Fund, as it seeks a new independent chairman by July 2010. |
In 2008, Sir Stuart added the responsibility of chairman onto his existing role of chief executive. | In 2008, Sir Stuart added the responsibility of chairman onto his existing role of chief executive. |
But Sir Stuart intends to stay in office until July 2011 before retiring. | But Sir Stuart intends to stay in office until July 2011 before retiring. |
Three shareholder advisory groups have called on him to split his role, with one calling the current setup a "dangerous concentration of power". | Three shareholder advisory groups have called on him to split his role, with one calling the current setup a "dangerous concentration of power". |
At last year's annual general meeting, Sir Stuart faced a shareholder vote to reappoint him. | At last year's annual general meeting, Sir Stuart faced a shareholder vote to reappoint him. |
He won, although 22% of investors did not back him. And now he faces his shareholders again. | He won, although 22% of investors did not back him. And now he faces his shareholders again. |
SIR STUART'S CV Started at M&S as a management trainee in 1972Then worked at retailers Burton Group, Argos and Arcadia before rejoining M&S as chief executive in 2004Appointed M&S executive chairman (combining chief executive and chairman roles) in June 2008Paid £1.77m in 2008 Profile: M&S boss Sir Stuart Rose | |
Boardroom rivalry | Boardroom rivalry |
The waters at Marks and Spencer (M&S) have been muddied still further by the admission of the deputy chairman, Sir David Michels, that he would like to become chairman when Sir Stuart Rose retires. | The waters at Marks and Spencer (M&S) have been muddied still further by the admission of the deputy chairman, Sir David Michels, that he would like to become chairman when Sir Stuart Rose retires. |
The Local Authority Pension Fund has given its backing to Sir David to succeed him. But reports suggest that Sir Stuart has been irritated by Sir David announcing his candidature. | |
M&S has already made concessions to shareholders in recent weeks, over the issue of bonuses. | |
Sir Stuart and marketing director, Steven Sharp, are to forego a third of their long-term bonus awards, following criticism from the Association of British Insurers. | |
But that issue may resurface at Wednesday's AGM. | |
SHAREHOLDER EVENT About 15,000 people gathered for the event, mostly retired shareholders, to have a superb M&S buffet lunch - apparently an important feature of the M&S AGM. | SHAREHOLDER EVENT About 15,000 people gathered for the event, mostly retired shareholders, to have a superb M&S buffet lunch - apparently an important feature of the M&S AGM. |
Sir Stuart was given a good welcome from the hall, before showing a rail of the firm's best selling clothes and product including the green bra featured in recent ad campaign. | Sir Stuart was given a good welcome from the hall, before showing a rail of the firm's best selling clothes and product including the green bra featured in recent ad campaign. |
Sixteen motions have been presented, the most controversial being the last one. | Sixteen motions have been presented, the most controversial being the last one. |
The Local Authority Pension Fund basically wants an independent chairman by July 2010, a year before Sir Stuart says he will step down | The Local Authority Pension Fund basically wants an independent chairman by July 2010, a year before Sir Stuart says he will step down |
Other controversial issues include the re-election of Lady Louise Patten, the chairperson of the remuneration committee | Other controversial issues include the re-election of Lady Louise Patten, the chairperson of the remuneration committee |
Nick Cosgrove, BBC business reporter | Nick Cosgrove, BBC business reporter |
Shareholders could vent their anger through the vote to re-elect Lady Patten, chairman of the remuneration committee. Investors may decide to vote against her or withhold their support. | |
M&S has a large number of small investors. More than 20% of shares in the retailer are held by private individuals, who have over the years been loyal to Sir Stuart, although they have seen their dividend payout slashed by a third. | M&S has a large number of small investors. More than 20% of shares in the retailer are held by private individuals, who have over the years been loyal to Sir Stuart, although they have seen their dividend payout slashed by a third. |
The row over the leadership is likely to overshadow the retailer's performance. M&S has been hit hard by the recession. | The row over the leadership is likely to overshadow the retailer's performance. M&S has been hit hard by the recession. |
Although in its latest trading statement, like-for-like sales in the UK had fallen, shares rose on the day and analysts have actually raised their profit forecasts for M&S. | Although in its latest trading statement, like-for-like sales in the UK had fallen, shares rose on the day and analysts have actually raised their profit forecasts for M&S. |
It remains to be seen whether shareholders are angry enough about Sir Stuart's role to risk leaving M&S rudderless, even temporarily, in the middle of a recession. | It remains to be seen whether shareholders are angry enough about Sir Stuart's role to risk leaving M&S rudderless, even temporarily, in the middle of a recession. |