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| Version 0 | Version 1 |
|---|---|
| Shareholders to grill M&S bosses | Shareholders to grill M&S bosses |
| (about 4 hours later) | |
| Marks and Spencer executives are set to face a grilling from investors at its annual general meeting in London later. | Marks and Spencer executives are set to face a grilling from investors at its annual general meeting in London later. |
| Some of the retailers' biggest shareholders are against chief executive Sir Stuart Rose faces also taking on the role of chairman. | |
| It is thought up to 30% may abstain or vote against his re-appointment as a director in protest. | It is thought up to 30% may abstain or vote against his re-appointment as a director in protest. |
| Investors will also want to know more about the outlook for M&S after a sharp drop in sales. | |
| Its shares fell almost 25% after Sir Stuart said last week that the company faced up to two years of difficult economic conditions that will hit its profits. | Its shares fell almost 25% after Sir Stuart said last week that the company faced up to two years of difficult economic conditions that will hit its profits. |
| 'Unwelcome distraction' | 'Unwelcome distraction' |
| M&S's plans to appoint Sir Stuart to the executive chairman's job, in addition to his role as chief executive, have proved unpopular with some shareholders. | M&S's plans to appoint Sir Stuart to the executive chairman's job, in addition to his role as chief executive, have proved unpopular with some shareholders. |
| "Combining the two roles in one person represents a dangerous concentration of power that is potentially detrimental to board balance, effective debate and board appraisal," corporate governance firm PIRC said. | "Combining the two roles in one person represents a dangerous concentration of power that is potentially detrimental to board balance, effective debate and board appraisal," corporate governance firm PIRC said. |
| A company chief executive looks after the day-to-day running of the business, while a chairman is meant to make sure he or she is doing a good job. | A company chief executive looks after the day-to-day running of the business, while a chairman is meant to make sure he or she is doing a good job. |
| There will be no specific vote on whether Sir Stuart should hold both posts, but PIRC recommends shareholders vote against his re-appointment as a director to show their opposition to the move. | There will be no specific vote on whether Sir Stuart should hold both posts, but PIRC recommends shareholders vote against his re-appointment as a director to show their opposition to the move. |
| In a letter to shareholders in April, M&S said appointing a new chief executive in 2008 or 2009 to replace Sir Stuart "was likely to be a damaging and unwelcome distraction at precisely the time that the business needed clear leadership to sustain its recovery and transformation". | In a letter to shareholders in April, M&S said appointing a new chief executive in 2008 or 2009 to replace Sir Stuart "was likely to be a damaging and unwelcome distraction at precisely the time that the business needed clear leadership to sustain its recovery and transformation". |
| Takeover speculation | Takeover speculation |
| Sir Stuart was brought in to fight off a takeover attempt from the billionaire owner of Top Shop, Sir Philip Green, in 2004. | Sir Stuart was brought in to fight off a takeover attempt from the billionaire owner of Top Shop, Sir Philip Green, in 2004. |
| Rumours that Sir Philip might be about to try again circulated on Monday, giving a much-needed boost to M&S shares. | Rumours that Sir Philip might be about to try again circulated on Monday, giving a much-needed boost to M&S shares. |
| M&S shares closed 7% higher at 231.50 pence. Before last week's profits warning they had been trading at more than 330p. | M&S shares closed 7% higher at 231.50 pence. Before last week's profits warning they had been trading at more than 330p. |
| However, Sir Philip denied reports that he had been buying up M&S shares. | However, Sir Philip denied reports that he had been buying up M&S shares. |