M&S's Rose survives shareholder rebellion

By Mark Potter

LONDON (Reuters) - Marks and Spencer (MKS.L: Quote, Profile, Research) boss Stuart Rose survived one of the biggest shareholder rebellions of recent years on Wednesday as 22 percent of investors abstained or voted against his election as executive chairman.

Rose, under fire for combining the roles of chairman and chief executive, said he had been described as "the Robert Mugabe of retail" but told 1,400 shareholders at their annual meeting that he took corporate governance "extremely seriously."

"M&S is an institution that is bigger than any one individual, and that certainly includes me," he said.

Rose pledged to continue expanding the retailer, despite a downturn in consumer spending, and said he would fix its upmarket food business, which triggered a profit warning last week, "in short order."

He was received warmly by small investors at London's Royal Festival Hall, where they enjoyed lavish hospitality, including tastings of M&S's Rocky Road ice cream and organic cider.

"It looks as if there's a catastrophe in the economy around the corner. So who better to steer the ship?" asked Denise Kieran, a retired teacher and magistrate.

But outside the meeting, corporate governance groups were urging M&S to reverse the concentration of power in Rose's hands as soon as possible.

"The size of today's vote would be significant if it were against any director, let alone the head of an iconic business, and demonstrates the depth of investor unease," said corporate governance consultancy PIRC. It added that the average vote in support of a director up for election was 98 percent.