M&S faces uphill struggle over Rose

MARKS & Spencer's attempts to win over critics of its controversial move to promote chief executive Sir Stuart Rose were dealt a blow yesterday.

Legal & General Investment Management, which has a 5 per cent stake in the retailer, said a meeting with leading members of the M&S board failed to allay its concerns about Rose's planned new position as executive chairman, announced by the retailer two weeks ago.

The appointment goes against the City's code on corporate governance, which recommends that a company should avoid promoting a chief executive to chairman.

The firm has defended the switch as "in the best interests of M&S", as it looks for a long-term successor to Rose when he leaves the group in 2011.