Marks & Spencer will report its latest sales figures today amid increasing anger over Stuart Rose’s dual role as chairman and chief executive.
The high street retail giant is expected to have seen a tough fourth quarter as consumers continue to rein in spending.
But it has also faced mounting calls to appoint an independent chairman, with the Local Authority Pension Fund Forum tabling a shareholder resolution urging the group to split Rose’s roles.
The Forum, whose members hold just over 1% of M&S’s shares, has long opposed M&S’s 2008 decision to allow Mr Rose to combine the roles of chairman and chief executive.
It said the move was a “clear breach” of the UK Combined Code on Corporate Governance, and previously warned that if an independent chairman was not appointed by the 2009 annual general meeting, it would table a shareholder resolution calling for one.
It said its resolution was intended to provide a “safety valve” for shareholders who wanted the company to uphold best practice, but did not want to vote against the re-election of Sir Stuart.
However, reports suggest Sir Stuart has received heavyweight backing from Richard Greenbury, the former head of Marks & Spencer and a leading figure in the development of Britain’s boardroom governance rules.
The embattled boss is likely to face awkward questions over the issue and will also come under scrutiny over M&S’s recent trading performance.
Analysts are pencilling in a 9% decline in general merchandise sales, down again on the 8.9% seen during the previous quarter as the group succumbs to the general high street gloom.
Food sales are thought to have fared slightly better, falling by 6.5% according to the consensus forecast – although this is also worse than the third quarter, when sales fell 5.2%.
M&S has suffered as cash-strapped customers have defected to cheaper rivals.
It saw like-for-like sales plunge 7.1% in the third quarter, representing its worst trading for almost a decade.
It added to the gloom by announcing 1,200 job cuts under plans to shut 25 Simply Food outlets and two main stores.
Freddie George, retail analyst at Seymour Pierce, is expecting “another set of poor figures” today, compounded by a later Easter than last year.