Marks and Spencer chief executive Marc Bolland has been warned by major shareholders that he faces the chop if he does not stem the company’s dwindling fortunes.
The news comes ahead of M&S’ AGM due to be held tomorrow at London’s Wembley Stadium.
According to investors quoted in the Independent on Sunday, the next few months will be crucial for Bolland as he tries to restore the high street retailer’s fortunes.
He is under pressure after pre-tax profits for the year to March plummeted to an eight-year low. The drop of 14% to £564.3m was blamed upon poor clothing sales. Bolland has now suffered seven consecutive quarters of falling clothing and homeware sales during his three-year tenure.
The success of the autumn-winter collections is said to be crucial in turning around the retailer’s fortunes. The autumn range is due to hit the stores this month.
The paper quoted one major investor as saying: “Bolland has been under real pressure since the annual results and people are now searching for evidence for why he should keep his job. He is drinking in the last chance saloon and the final few months of this year will be key.”
Bolland’s overall pay packet fell by a third in 2012, however he is likely to come under pressure tomorrow for accepting an £829,000 bonus.