Fresh fury over M&S restructure
- Published: 26 March 2008 15:44
- Author: Laura Weir
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- Last Updated: 26 March 2008 16:39
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Sir Stuart Rose has come under heavy criticism for the restructuring at M&S
Legal and General, a shareholder in Marks & Spencer, has turned up the heat on M&S, rejecting fresh explanations over the promotion of Sir Stuart Rose from chief executive to executive chairman.
Legal & General Investment Management (LGIM) had already publicly criticised the move, which was announced earlier this month.
However following a meeting with the retailer's deputy chairman Sir David Michels and current chairman Lord Burns, the firm issued a statement on behalf of LGIM head of equities Mark Burgess today rejecting M&S's reasoning for the move.
Burgess said: "While we understand their arguments we do not agree that this is a necessary structure to allow for the successful appointment of a successor to the current CEO. We do not support a dilution in corporate governance standards, particularly in leading UK companies."
An M&S spokeswoman said: "We have made our position very clear over the past couple of weeks and we have nothing further to add."
