City banker Swannell named as new M&S chairman
24 August 2010 09:32
Marks & Spencer ended months of speculation over its succession plans today 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 4th January.
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 4th October before assuming the role of chairman in January 2011.
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. I look forward to joining the M&S team and working with my new colleagues on the board."
Sir Stuart Rose said: "I am delighted that Robert is to be M&S' next chairman. His appointment completes our succession plan and enables us to revert to standard governance practice. His considerable experience of both the City and the commercial world will be a real asset to the board and the business."
The new chief executive Marc Bolland also commented: "Robert will be an excellent Chairman for us. He has strong complementary skills and I am very much looking forward to working with him."
Meanwhile, Sir David Michels, M&S deputy chairman, said: "On behalf of everyone at M&S I would like to welcome Robert to his new role. I would also like to take this opportunity to thank Stuart for his contribution and commitment to the company over the last six and a half years and wish him well for the future."
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 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."
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.
Neil Saunders, consulting director at retail analyst Verdict Research, said: "Robert Swannell is not necessarily the first name that comes to mind for chairman of Marks & Spencer.
"However, his appointment makes strategic sense. He knows his way around M&S, retail and the City. Sure, he's not as big a personality as Sir Stuart, but he is just as competent and that's what counts.
"One challenge is his relationship with the thousands of small shareholders, they adored Sir Stuart so Mr Swannell will have a very tough act to follow."
He added: "In many ways, winning over these small shareholders is a more difficult task than managing the larger institutional shareholders in the City."
M&S said it had no concerns over Mr Swannell remaining as chairman of HMV Group as the firms do not operate in competing spaces.
Mr Swannell is also non-executive director of property investor British Land. He will step down as non-executive director of infrastructure investor 3i.
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