Sir Stuart Rose moves upstairs at M&S
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An interesting management change at Marks and Spencer sees Sir Stuart Rose being promoted to Executive Chairman as the retailer seeks to rebuild investor confidence.
Sir Stuart’s promotion is likely to be seen as a controversial move. The management structure of a public company like M&S is normally expected to follow the rules of good corporate governance. Those rules recommend that the Chairman of a plc should be independent of the executive directors of the company. In effect, the Chairman is meant to act as an independent representative of the shareholders on the board, working alongside non-execitive directors to ensure that the business is being run properly.
Read the M&S press release about the management changes here
However, another influence is at play with M&S.
Sir Stuart was brought into the business four years ago in an attempt to head off an attempted takeover. He was due to step down in 2009, which would have raised issues of management succession.
Despite recent concerns about M&S trading (reflected in a significant share price fall), Sir Stuart is very much credited with turning M&S around. His promotion to Executive Chairman will see him stay in control until 2011 at the earliest. Perhaps best practice corporate governance has been sacrificed for a better deal for M&S shareholders - having the best man for the job stay in the business.
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