By James Davey and Raechel Thankam Job
LONDON (Reuters) -British retailer Marks & Spencer has extended Archie Norman’s tenure as chairman for three more years from September 2026, saying the decision has the “widespread support” of shareholders.
Norman, one of the best known names in UK business, started as M&S chairman in 2017, and is widely credited with playing a key role in the revival of the group’s performance and its share price in recent years.
Under Britain’s corporate governance code, a chair is expected to step down nine years after joining the board, unless companies can explain why an extension is justified.
Norman reaches the nine-year mark in September next year.
“The board is unanimous in its conviction that his continuation as chairman is in the best interests of the company and there is widespread support for this view across the shareholder base,” M&S, which is currently recovering from a damaging cyberattack in April, said on Tuesday.
It said Norman’s term extension will be subject to an annual review by a committee of independent directors and no major change of circumstances.
Prior to the cyberattack, M&S was starting to reap the rewards of a costly programme to improve the value and quality of its food and clothing, overhaul its store estate, upgrade its technology and e-commerce operations and modernise its supply chain.
“There remains much to do, and Archie’s deep knowledge of the business, drive and unique experience will be invaluable as we move to the next phase of the ‘Reshaping for Growth’ plan,” Senior Independent Director Fiona Dawson said.
M&S has said the cyberattack will cost it 300 million pounds ($398 million) in lost operating profit in its 2025/26 year.
However, industry data has shown the group is recovering well.
Data from Worldpanel published on Tuesday showed M&S’ grocery sales were up 7.7% in the 12 weeks to October 5 year-on-year. Also, data from Kantar showed an acceleration in M&S’ trading momentum in clothing.
Clive Black, analyst at Shore Capital, M&S’ house broker, welcomed Norman’s extension.
“Whilst those of a rather prescriptive process bent may splutter, we firmly believe that this is good for all stakeholders in M&S in the here and now and further out too,” he said.
($1 = 0.7534 pounds)
(Reporting by James Davey in London and Raechel Thankam Job in Bengaluru and Sarah Young; Editing by Sharon Singleton)
