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M&S chief wins vote amid protest | M&S chief wins vote amid protest |
(10 minutes later) | |
Marks and Spencer executive chairman Sir Stuart Rose has won a shareholder vote to reappointment him, even though 22% of investors did not back him. | Marks and Spencer executive chairman Sir Stuart Rose has won a shareholder vote to reappointment him, even though 22% of investors did not back him. |
The level of opposition, with 6% voting against and 16% abstaining, was described as "significant" by critics. | |
Sir Stuart faced opposition over his role that combines the jobs of both chairman and chief executive. | |
Critics said combining both roles broke corporate governance rules, as one person had too much power at the firm. | Critics said combining both roles broke corporate governance rules, as one person had too much power at the firm. |
Corporate governance consultants PIRC said the vote "demonstrates the depth of investor unease". | Corporate governance consultants PIRC said the vote "demonstrates the depth of investor unease". |
Shareholders give their views on Sir Stuart Rose's dual role at M&S | Shareholders give their views on Sir Stuart Rose's dual role at M&S |
"The vote is a clear signal from M&S shareholders that they have serious reservations about the company's decision to ignore well-established best practice," said PIRC managing director Alan MacDougall. | "The vote is a clear signal from M&S shareholders that they have serious reservations about the company's decision to ignore well-established best practice," said PIRC managing director Alan MacDougall. |
So far this year, an average of only 2% of shareholders of FTSE 100 companies have opposed the re-election of its directors. | |
During the meeting, Sir Stuart defended his role to the company's investors, insisting that the board's "strong, independent and challenging" non-executive directors would keep him in check. | During the meeting, Sir Stuart defended his role to the company's investors, insisting that the board's "strong, independent and challenging" non-executive directors would keep him in check. |
Supporting Sir Stuart, M&S deputy chairman Sir David Michels said: "He unquestionably has the right set of skills to take Marks and Spencer forward and to complete the job he has started." | Supporting Sir Stuart, M&S deputy chairman Sir David Michels said: "He unquestionably has the right set of skills to take Marks and Spencer forward and to complete the job he has started." |
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". |
Last week, M&S' shares fell almost 25% after Sir Stuart said that the company faced up to two years of difficult economic conditions that will hit its profits. | Last week, M&S' shares fell almost 25% after Sir Stuart said that the company faced up to two years of difficult economic conditions that will hit its profits. |