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Swannell, 59, is a former Chairman of Citi's European investment bank and vice chairman of Citi Europe and the current Chairman of music, books and games retailer HMV Group. Sir Stuart will stay as chairman until the latter date when he will leave the retailer, three months earlier than his previously stated last possible departure date of the end of March.
A spokesman for M&S said Swannell will be paid an annual salary of £450,000 when he becomes chairman, nearly half the £875,000 Sir Stuart was on. "It is a privilege to be asked to chair one of the world's greatest brands," Swannell said in a statement. “I look forward to joining the M&S team and working with my new colleagues on the board.”
Confirmation of Swannell's appointment was welcomed by analysts. "His appointment makes strategic sense. He knows his way around M&S, retail and the City," said Neil Saunders, Consulting Director at Verdict.
The appointment completes the restructuring of M&S's board. Marc Bolland, the former boss of Morrisons, succeeded Sir Stuart as Chief Executive in May, while Alan Stewart was appointed Finance Director earlier this month. Swannell’s arrival also comes at a critical time for the retailer. Bolland is delivering his strategic plan to the City in the autumn and must decide whether M&S should expand more aggressively abroad and online as well as set out his vision for its core clothing and food businesses.
Swannell’s appointment will also see M&S revert to standard governance practice. Sir Stuart has had a rocky relationship with institutional shareholders since he combined the roles of chairman and CEO in 2008 against corporate governance guidelines. Sir Stuart will depart M&S after six and a half years at the company. He was initially parachuted into the retailer in 2004 to fend off a takeover approach from billionaire retail entrepreneur Philip Green, a defence that Swannell, then at Citi, advised on.
No comments have been made.