Marks & Spencer has ended months of speculation over its succession plans when it named City banker Robert Swannell as its next chairman.
Mr Swannell, who was a lead adviser to M&S in its defence against retail tycoon Sir Philip Green's takeover bid in 2004, will succeed Sir Stuart Rose on January 4.
The former vice-chairman of US bank Citigroup's European operations will be paid £450,000 a year for the non-executive role. He will join the board on October 4 before assuming the role of chairman three months later.
The 59-year-old, who is also chairman of HMV Group, a position in which he will remain, said: "It is a privilege to be asked to chair one of the world's greatest brands."
Mr Swannell can expect to receive plenty of scrutiny from the company's army of private shareholders and the industry as a whole, analysts said.
Sir Stuart, who will continue as chairman until January 4, previously held the role of both chairman and chief executive - a position which is against best practice and was deeply unpopular with its major stakeholders.
The role was split earlier in the year as former Morrisons boss Marc Bolland was brought in as new chief executive. Bowing to pressure from shareholders, M&S agreed to cut Sir Stuart's pay by 25% from £1.16 million to £875,000, as he lost his executive role.
Samuel Johar, chairman of headhunters Buchanan Harvey, said Mr Swannell's considerable experience in the City - more than 33 years - could help mend relations with the larger stockholders.
He told the FT: "Given that M&S's relations with the City are a little frayed, Robert Swannell's intimate knowledge of the City and clubbable style would certainly improve relations."
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But analysts said Mr Swannell will also face a battle for the hearts of M&S' small shareholders, many of whom were charmed by Sir Stuart.
