M&S shake-up starts race to succeed Rose
Sir Stuart Rose fired the starting gun today on the race to replace him at the helm of Marks & Spencer.
A radical management shake-up will see Sir Stuart move up to executive chairman from chief executive, leaving others jostling for the top job.
Kate Bostock, the chain's director of womenswear and lingerie, joins the board as head of clothing and is one of the frontrunners.
Rose is credited with turning around M&S after years of troubles. But performance has stumbled lately, leading to whispers in the City that he should have left while the going was good.
Insiders say there was no suitable replacement - no "complete retailer" ready for the job.
Today's controversial move sees Rose pledging to stay with the company until July 2011. The M&S chairman, Lord Burns, will step down on 1 June this year.
Finance director Ian Dyson sees his role extended to include retail and human resources. He and Bostock are perhaps the top two contenders to replace Rose, but Carl Leaver and Steve Esom are also in the frame.
Burns said the shake-up is aimed at keeping both Rose and marketing boss Steve Sharp on board while a successor is groomed.
"There are more and younger people coming on to the board. From this should come Stuart's ultimate replacement. They have more responsibility and more chance to show their mettle," he said.
David Michels will join M&S as deputy chairman. Rose, knighted in the New Year honours in January, will face tough questions from the City about the exact nature of his new position.
He reacted with barely concealed anger when asked recently if it was time for him to go. "It's a bit early to be writing me off," he said when unveiling disappointing Christmas sales figures.
He is known to be desperate to protect his legacy and refuses to stand down until he is certain that M&S is seen as a pure success story.
M&S is in line to make profits of towards £1 billion this year, but the shares have tumbled on fears that the economic downturn has taken a heavy toll on the company.
As part of the shake-up, several senior figures will leave. Guy Farrant steps down as head of retail after 30 years with the company. Tony Quinlan, Simon Ratcliffe and Jude Bridge will also depart.
Sir Stuart said: "M&S is a business with a strong heritage and great potential. This is an important time in its development.
"In taking on the role of executive chairman, my task will be to guide the business through the next stage of growth."
