Shareholders are furious over pay, performance, and succession planning at Marks and Spencer, foreshadowing a tumultuous annual meeting next month, reports The Financial Times.
Some of the larger shareholders are expected to vote against the company’s remuneration policies, the annual report, and accounts. Others have warned they will vote against or withhold votes for the re-election of Lady Louise Patten to the company’s board.
Chairman and CEO Sir Stuart Rose is planning to retire by July 2011 and shareholders are uneasy over who will replace him. Shareholders were already perturbed at the decision to make Rose both chairman and chief executive.
Lady Patten, chairman of the remuneration committee, is under fire for pay issues, despite Rose and Steven Sharp, executive marketing director, earlier this week announcing that they would give up their more than 1.5 million pounds of long-term bonus shares.
The search for Rose’s replacement could start as soon as this fall. Sir David Michels, deputy chairman and senior independent director, has indicated that he would like to replace Rose, however Rose does not wish Michels to be his replacement.