Marks & Spencer faces shareholder rebellion
Marks & Spencer is heading for a clash with shareholders over the appointment of an independent chairman for the retailer.
Shareholders are unhappy at Sir Stuart Rose's move to become chairman without giving up his job as chief executive last year and the Local Authority Pension Fund Forum (LAPFF) has put forward a resolution to end his dual role.
Many institutional shareholders are in favour of the resolution and the UK Shareholders' Association (UKSA), which represents 200,000 retail investors, has also said it may lend its support.
"As an organisation, we said last year we would like to see that issue resolved, so we probably will support it," said Roger Lawson from the UKSA.
But he added individual members may well vote against it as Sir Stuart has strong support among private investors.
Whatever the outcome, Marks & Spencer is reportedly planning to insist the vote is "advisory" and does not need to be acted on, a move likely to provoke anger among shareholders.
The retailer also faces a protest vote over the re-election of non-executive director Louise Patten, who awarded large bonuses to Sir Stuart and marketing director Steven Sharp.
The pair agreed to hand back one third of their package, however, to avoid the inevitable shareholder backlash at the annual meeting.
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