The appointment of Lord Burns as chairman of Marks and Spencer this week has effectively given chief executive Stuart Rose 14 months to turn the business around, say analysts.
The announcement that Lord Burns will replace Paul Myners, who will step down from the board at the AGM in July 2006, has led many in the City to the view that if Rose’s strategy is not delivering, then Burns would find it easier to get rid of him than his close ally Myners.
Simon Proctor, a retail analyst at Charles Stanley, said if Rose was not delivering by July 2006, then whoever was chairman would have to take action. One
of Lord Burns’ first tasks when he joins initially as deputy chairman in October will be to help heal the rift between the two sides in the boardroom battle headed by Myners and non-executive chairman Kevin Lomax.
M&S is set to announce its annual results on Tuesday, May 24.