Investors gain the upper hand at Marks & Spencer
Sir Stuart Rose has been forced to give up over £1 million in bonus shares after a significant investor backlash against what many believe was a very lucrative long-term investment plan. The chief executive of Marks & Spencer has also been joined by Marks & Spencer marketing director Steven Sharp who is said to be behind the Your M&S campaign and the recent 125th anniversary promotion.
Despite the fact that Marks & Spencer has recovered strongly under the guidance of Sir Stuart Rose the company has sailed very close to the wind with regards to corporate governance guidelines - something which has invoked a significant backlash from institutional shareholders. While the shares given up by Sir Stuart Rose amount to around one third of his bonus share entitlement this is a move which has been well received by shareholders. The company, like so many in the retail sector, has had a difficult time of late and while there is renewed hope for the future there is no doubt that the UK high street will take some time to recover in full.
It will be interesting to see how consumers react to an eventual resurgence on the high street as many have now become adept at online shopping.
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