Blog: Rose rises to executive chair
Leonie Barrie | 11 March 2008
While news of the shake-up at M&S had a negligible effect on share price yesterday, it does at least clear up one of the biggest issues the retailer had been facing: what happens beyond 2009, when boss Sir Stuart Rose was due to step down.
Well now we know that he’s going to be around for another two years after this date, albeit stepping up to the role of executive chairman.
Whether this is the end of the matter, though, is unlikely. Rose's move defies the Combined Code on corporate governance, which recommends companies avoid promoting a chief executive to the post of chairman.
And it has already raised concerns at the retailer’s second-largest shareholder, Legal & General, which admits it is worried about the decision to put too much power in one man's hands.
But what it does do is give M&S some much needed breathing space. It not only builds in another three years to find a successor to Sir Stuart, but also gives him more time to get the business back on track and ensure M&S’ big push overseas is well underway.
After making substantial progress to revitalise the retailer since his appointment in 2004, growth has slowed in the last few months, with Rose warning that tough trading conditions are likely to persist in 2008. There’s no doubt he’d like to go out on a high and this goal is now back within reach.
Some of just-style’s more eagle-eyed readers might have noticed a small change to the menu bar on the homepage: the addition of the word re:source. Yes it might be a small change – but it marks the co...
Over the past week just-style has continued to try to unravel the potential ramifications of Donald Trump’s election as the next president of the United States....
One event dominated the international airwaves last week, and on just-style too we took a closer look at the surprise election of Donald Trump as the 45th president of the United States....
As the Brexit roller-coaster continues to twist and turn, and the US presidential election campaign nears its unpredictable and possibly protectionist end, there's no doubt these events – and the perc...
- Steps to piloting living wage in garment factories
- How to ensure sustainability is more than a slogan
- US apparel retailers' November 2016 sales roundup
- Why do modern robotics elude sportswear makers?
- Trump blows the case for Brexit out of the water
- Esquel efficiency drive continues to boost brands
- Taiwan textile maker investing in first US plant
- US Q3 in brief – Sears, Vince Holding, Genesco
- Myanmar garment industry "lacking labour rights"
- Outdoor apparel sector set for double-digit growth