M&S exits cloud succession issue

Marks & Spencer shares fell again today after a poor day yesterday, when its earnings announcement left investors cold. Today the City turned its attention to the question of who will succeed Sir Stuart Rose when he leaves within the next two years. Carl Leaver, who had headed the international division, is to leave in the next three months, having been widely seen as a potential successor to Rose. He is thought by some to have been a victim of the company’s botched store opening in China. Certainly the episode was a big embarrassment for the retailer in its forst foray into mainland China. His departure comes in the wake of the ousting of Steve Esom last year. He was head of the company’s food division, and a former Waitrose chief, but suffered as the group’s position in the sector took a knock.Observers felt that the departures may have weakened the management structure at Marks & Spencer and the reshuffle which resulted in additional responsibilities for head of fashion Kate Bostock and finance director Ian Dyson does not make the picture much clearer. According to some analysts Dyson may have moved into pole position for Rose’s role ahead of Bostock after being put in charge of the company’s initiative for a return to growth: Doing The Right Thing. However others felt things were less clear.Only Steven Sharp, who is in charge of M&S’s marketing division has survived Rose’s reign, with 10 senior directors not making the cut in the period. With Dyson top of the list of possible successors and the company preferring to promote from within, the pressure is certainly on for him to do the right thing.WHAT THEY ARE SAYINGRichard Fletcher, Daily Telegraph: "Yesterday, Sir Stuart added another role [for Dyson]: overseeing the latest strategic plan 2020 - Doing the Right Thing. This is certainly not just any finance director. This is an M&S finance director. Yet no matter how wide-ranging (or how hard-working) his role, there are still questions over whether Dyson is the right man for the top job. Like Wenger (and the Arsenal board) Sir Stuart needs to look outside Team M&S for the next generation of talent."David Wighton, Times: "There is growing conviction that the board will look outside for a successor. Justin King insists he does not want to leave Sainsbury's. But he would not have to if the long-standing idea of merging the two companies were revived. There would be considerable logic to it and the recovery in M&S’s share price this year means the pair are now closely matched in terms of market value. And it would certainly allow Sir Stuart to go out with a bang, which otherwise is going to be difficult." ·