Is Stuart Rose about to be forced out of Marks & Spencer?
Amid signs that institutional investors are not happy with Sir Stuart Rose taking on the role of executive chairman and chief executive, there are signs this evening that at least three dominant parties will demand that the roles be split. The fact that amalgamating these two prominent positions in any one company goes against the very basics of UK governance guidelines appears to have been overlooked by Marks & Spencer and there is great friction between Sir Stuart Rose and institutional investors.
While there is no doubt that Sir Stuart Rose has been very successful in turning around what was when he joined an ailing company, many people believe that his dominance over the whole group is far too strong. There has been significant friction in the past, although due to a number of last-minute concessions for the future deals there were no real changes made. However, this time it looks as though institutional investors certainly have Sir Stuart Rose in their sights and many would not be sad to see the back of a man who quite literally saved Marks & Spencer from the doldrums.
The shelf life of any chief executive and executive chairman is difficult to predict but who would have suggested just two years ago that institutional investors would on the whole be turning against Sir Stuart Rose?
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