M&S appoints Burns to the top job

HIGH STREET stores group Marks & Spencer's stand-in chairman Paul Myners has lost his battle to take the role permanently. After weeks of bitter boardroom squabbling, M&S said Abbey National chairman Lord Burns will join the company from October as deputy chairman before taking the full time role at its annual general meeting in July 2006.

Myners will continue in the chairman's role until Burns takes the reins, but will leave the board afterwards.

Myners wanted to take the chairman's position permanently and was backed by shareholders, staff and customers. However, non-executive director and head of the nominations committee Kevin Lomax insisted an outsider should be appointed.

Lomax was reportedly determined not to allow Myners to extend his contract, fearing that he is too close to chief executive Stuart Rose and has too many directorships in other companies to devote enough time to running M&S.

'The new appointment marks an end to the unseemly haggle over the post,' said Tim Green at Brewin Dolphin Securities.

Burns, a former Treasury mandarin and National Lottery chairman, also holds non-executive positions at Banco Santander, Pearson Group and British Land.

He said: 'Marks & Spencer is a company with a great brand and a strong heritage. I am pleased to be joining the board at this important time.'

Burns will join M&S as the company continues its struggle to reverse its fortunes. Sales dipped again last month and the company admitted trading remained difficult. Non-food sales were down 6.7% for the 13-weeks to 2 April. The company will unveil its full-year results next week.

M&S shares showed little reaction to the news, dropping 1p to 325p in mid-morning trading.