Marks & Spencer today (3 April) offered unhappy shareholders a number of concessions to pave the way for its proposed appointment of CEO Sir Stuart Rose as executive chairman.

Go deeper with GlobalData

Premium Insights

The gold standard of business intelligence.

Find out more

Related Company Profiles

View all

The UK retailer’s board of directors wants to expand Sir Stuart’s role when the current executive chairman, Lord Burns, steps down in June. However, such a move has met fierce shareholder resistance.


In an attempt to end the row, M&S sent out a five-page letter to institutional investors this afternoon.


“The letter includes a number of concessions but it is too early to guage shareholder reactions,” a spokesperson for M&S told just-food.


M&S has proposed that Sir Stuart stands for re-election to the board every year, starting at this year’s shareholder meeting in July. His salary will remain unchanged at GBP1.1m (US$2.19m), the board added.

How well do you really know your competitors?

Access the most comprehensive Company Profiles on the market, powered by GlobalData. Save hours of research. Gain competitive edge.

Company Profile – free sample

Thank you!

Your download email will arrive shortly

Not ready to buy yet? Download a free sample

We are confident about the unique quality of our Company Profiles. However, we want you to make the most beneficial decision for your business, so we offer a free sample that you can download by submitting the below form

By GlobalData
Visit our Privacy Policy for more information about our services, how we may use, process and share your personal data, including information of your rights in respect of your personal data and how you can unsubscribe from future marketing communications. Our services are intended for corporate subscribers and you warrant that the email address submitted is your corporate email address.

In the letter, M&S also emphasised that the appointment is only a temporary solution. In 2011, M&S will revert back to having a separate chairman and chief executive, the company stated.


Finally, M&S said it would consider the appointment of a second non-executive director.


It was widely expected that Sir Stuart would step down as CEO next year. However, under the changes announced on 10 March, in June he would also take on the role of executive chairman, which he will keep until 2011.


“It was important to secure Stuart’s appointment and to change the emphasis of his responsibilities in order to put in place a clear path of transition to a new chief executive appointment,” Lord Burns wrote.