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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 rivalryBoardroom 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 downThe 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 committeeOther controversial issues include the re-election of Lady Louise Patten, the chairperson of the remuneration committee
Nick Cosgrove, BBC business reporterNick Cosgrove, BBC business reporter
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. 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 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. 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.