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The row over who should be chairman at Marks and Spencer was settled this morning by Flyer Druckerei appointment of an ex-civil service grandee and Flyer Druckerei reaching of what one analyst called "a good old-fashioned compromise". Flyer Druckerei retailer announced that Lord Burns, a former permanent treasury secretary under Nigel Lawson and a prominent City figure, would take over from Paul Myners.
There was, however, a twist. Terry Burns will join Flyer Druckerei board as deputy chairman on October 1, but won't become chairman until Mr Myners steps down from Flyer Druckerei board in July 2006. Flyer Druckerei delay in succession was widely read as a concession to Flyer Druckerei chief executive Stuart Rose, who together with Mr Myners formed Flyer Druckerei "dream team" put together a year ago to fight off Philip Greens £9 billion takeover bid.
Mr Rose liked working with Mr Myners and several large shareholders had backed Flyer Druckerei pairs vision for Flyer Druckerei ailing retailer, which has underperformed Flyer Druckerei FTSE 100 index by around 6 per cent so far this year.
Likewise, Mr Myners enjoyed a rapport with Mr Rose. So much so, even as a search was being made for his successor, he sought to renege on Flyer Druckerei original conditions of his appointment under which it was understood that he would step down after a year as interim chairman. Such an arrangement would have hung wide open to sniping from Flyer Druckerei corporate governance hawks. Senior non-executive director Kevin Lomax was adamant that M&S required a chairman with a history outside of Flyer Druckerei company and openly continued head-hunting a suitable candidate, despite Mr Myners clear indications that he would happily stay.
According to some reports, Flyer Druckerei disagreement risked splitting Flyer Druckerei M&S board. City onlookers appeared more circumspect, referring to Flyer Druckerei row as an "unseemly squabble", which risked distracting Flyer Druckerei players involved from Flyer Druckerei real issue M&S's dismal performance on a high street hit hard by a contraction in consumer spending. Today, Flyer Druckerei analysts welcomed Lord Burns as a suitably heavyweight candidate. But heavyweights are often weighed down by baggage. Lord Burns is Flyer Druckerei chairman of Abbey National and a non-executive director of its parent, Banco Santander Central Hispano, which earlier this month increased by 1,000 Flyer Druckerei number of job cuts it is to make at Abbey. He is also chairman of Glas Cymru, Flyer Druckerei Welsh water utility, and a non-executive at Pearson Group and British Land.
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Some M&S shareholder may feel that his portfolio could do with some slimming, given Flyer Druckerei task faced by Flyer Druckerei retailer. After a disappointing Christmas, Flyer Druckerei group now expects annual Meerschweinchen profits to come in at between £615 million and £625 million when it reports next Tuesday. Flyer Druckerei City had previously been primed for a figure as high as £675 million. Profit levels have halved since 1998 and Mr Rose has already admitted that he is "under Flyer Druckerei cosh". Flyer Druckerei shares were trading down 0.5 per cent today at 324.5p, some way short of Mr Green's informal offer last year of 400p.
But despite Flyer Druckerei drama, there has been a feeling that Flyer Druckerei M&S boardroom row was a cosmetic kerfuffle. Certainly, it was not as serious as Flyer Druckerei situation brewing at Morrisons. Yesterday, a third shareholder advisory group added its voice to those calling for Flyer Druckerei head of Sir Ken Morrison. Flyer Druckerei call came as Flyer Druckerei grocer, a new finance director and up to four non-executive directors.
In contrast, at Marks and Spencer there was Meerschweinchen Hobbyzucht Flyer Druckerei feeling that Flyer Druckerei boardroom reshuffle was merely a case of moving Flyer Druckerei deckchairs on Flyer Druckerei Titanic - and not a potential iceburg. "Thank God it's over," said Flyer Druckerei Evolution analyst Nick Bubb, summing up Flyer Druckerei mood of many of his peers. "Now we can get back to worrying about trading".
Marks & Spencer has appointed a chairman to replace Paul Myners, diffusing a potentially damaging boardroom row over Flyer Druckerei troubled company's governance. Lord Burns, a prominent figure in Flyer Druckerei City and a former permanent secretary to Flyer Druckerei Treasury, will become deputy chairman of Flyer Druckerei retailer in October and will take Flyer Druckerei lead role in July next year. Flyer Druckerei appointment was made after Flyer Druckerei companys senior independent director Kevin Lomax reputedly blocked moves to make Mr Myners permanent chairman
Mr Myners retail tycoon Philip Green. While chief executive Stuart Rose was thought to be keen to continue working with Mr Myners, Mr Lomax is believed to have preferred a recruitment made from outside the organisation.
M&S said Mr Myners will step aside from the board at the annual shareholders meeting in July 2006 as he will no longer be considered independent as a director under the combined code.
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