M&S's Rose To Become Just Chairman From July 31
18.03.10, 17:59 Uhr
LONDON -(Dow Jones)- Marks & Spencer Group PLC (MKS.LN) Thursday
said that executive chairman Stuart Rose will become chairman of the
retailer July 31, relinquishing the executive role he has played since
June 2008, and ultimately leave the company in March 2011.
The announcement comes some four months after the company said
that Marc Bolland, at the time chief executive of supermarket group
William Morrison Supermarkets PLC (MRW.LN), would takeover as Marks
& Spencer's new chief executive.
Rose will continue to chair the M&S Board and ensure a smooth transition for Bolland when he joins the company May 1, departing the iconic retailer in March 2011. Headhunters have now been appointed to identify and recruit an independent chairman.
Rose's dual role as executive chairman at Marks & Spencer has met plenty of criticism from shareholders who argue that it is against corporate governance best practice as it gives one person too much control of decision-making.
"We are pleased to be moving into the final stage of our commitment to split the roles and appoint an independent Chairman by March 2011," said David Michels, deputy chairman of Marks & Spencer.
Rose will receive a salary of GBP875,000 in his new role, a pay cut of 25% from his previous salary of GBP1.16 million. An analyst said that although the pay cut will generally placate large investors who wanted Rose's salary to be reduced following the high-profile appointment of Bolland, the remuneration is still quite high.
Analysts said the headhunters would be working hard to secure the right appointment to succeed Rose.
U.K. Financial Services Secretary Paul Myners or New Look Chairman Phil Wrigley may be in the frame for the chairman role, Arden Partners analyst Nick Bubb said. Bubb added, however, that the group may choose to look outside the sector to find a successor.
At 1623 GMT, Marks & Spencer shares were up 0.6% at 356 pence, valuing the company at GBP5.63 billion.
Rose will continue to chair the M&S Board and ensure a smooth transition for Bolland when he joins the company May 1, departing the iconic retailer in March 2011. Headhunters have now been appointed to identify and recruit an independent chairman.
Rose's dual role as executive chairman at Marks & Spencer has met plenty of criticism from shareholders who argue that it is against corporate governance best practice as it gives one person too much control of decision-making.
"We are pleased to be moving into the final stage of our commitment to split the roles and appoint an independent Chairman by March 2011," said David Michels, deputy chairman of Marks & Spencer.
Rose will receive a salary of GBP875,000 in his new role, a pay cut of 25% from his previous salary of GBP1.16 million. An analyst said that although the pay cut will generally placate large investors who wanted Rose's salary to be reduced following the high-profile appointment of Bolland, the remuneration is still quite high.
Analysts said the headhunters would be working hard to secure the right appointment to succeed Rose.
U.K. Financial Services Secretary Paul Myners or New Look Chairman Phil Wrigley may be in the frame for the chairman role, Arden Partners analyst Nick Bubb said. Bubb added, however, that the group may choose to look outside the sector to find a successor.
At 1623 GMT, Marks & Spencer shares were up 0.6% at 356 pence, valuing the company at GBP5.63 billion.
Company Web site: www.marksandspencer.com/
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