Marks & Spencer is facing a major shareholder rebellion with up to 30 per cent of investors expected to reject Sir Stuart Rose’s promotion to executive chairman.
Between 20 per cent and 30 per cent of the high street retailer’s shareholders are understood to be planning to either vote against Sir Stuart’s election as executive chairman or to abstain from the vote, reports have said.
Investors were angered by the way Sir Stuart was promoted to a dual role of chief executive and executive chairman, a move that contravenes corporate governance guidelines which state that the two roles should be kept separate.
Two big investment funds, Schroders and Legal & General, have led the attack against M&S, the reports said.
A further four large investors, ABP, Railpen, the Co-operative Insurance Society and Europe’s biggest pension fund Universities Superannuation Scheme, have also said they will vote against the company’s report and accounts.
Sir Stuart is also expected to come under fire after the group issued a profits warning last week, sending M&S’s shares down 25 per cent on the day and wiping around £1.25 billion off the value of the company.