Rose’s new job sees sparks fly at M&S

He may have put an ailing Marks & Spencer back on the map, but chief executive Sir Stuart Rose's new appointment as executive chairman has sparked a furious row among the chain's largest investors. The boardroom reshuffle will see the non-executive chairman Lord Burns step down on June 1, when Rose will add the new role of executive chairman to his job spec. Rose - who is widely credited with reversing M&S's fortunes in the last four years - was tipped to leave next spring. The new deal will keep him at the business until 2011.

But shareholders have attacked the move, saying it is a clear breach of practice and gives Rose far too much power. "We believe strongly in the separation of the roles of chairman and chief executive, believing this allows a much needed balance in the boardroom and prevents the potentially damaging concentration of power," said Mark Burgess, head of equities for Legal & General which is M&S's second-biggest shareholder. One individual should not hold "unfettered powers of decision", he added.

Since 2004, Rose has successfully injected glamour back into what had become a dowdy brand, with high-profile ad campaigns starring celebrities like Twiggy and Hollywood actor Antonio Banderas, backed by stronger merchandise. However, the announcement comes as Rose endures his toughest spell in his four years in charge, with the chain suffering one of the biggest losses on the high street over Christmas. Shares may have hit a high of 749p last year but since then they have fallen 50 per cent. (Continued below)

Kate Bostock, head of M&S's clothing business, and already one of the most powerful women in British retail, is tipped as frontrunner to replace Rose as chief executive in 2011.