Marks & Spencer’s decision to appoint chief executive Sir Stuart Rose to the position of executive chairman has drawn yet more criticism from investors.
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M&S intends to keep the roles combined until the company appoints a new CEO in 2011.
This has attracted heavy criticism from the UK retailer’s shareholders, who claim that Sir Stuart’s appointment to both positions breaches corporate governance guidelines.
At the company’s AGM staged earlier this month investors registered their disapproval of the dual role, with one in five failing to back Sir Stuart’s reappointment to the board by either voting against him or abstaining.
The Local Authority Pension Fund Forum (LAPFF) has confirmed to just-food that it is considering raising the issue again at next year’s AGM by tabling a motion that calls for the immediate appointment of an independent chairman.
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By GlobalDataLAPFF has around a 2% stake in M&S. This means that it will have to work with other disgruntled investors, as to table a motion requires a 5% stake or the support of 100 shareholders.
The LAPFF said it is currently conferring with investment consultancy PERC over the possibility of tabling a motion.
