Marks & Spencer Group Plc Chief Executive Officer Stuart Rose, who revived earnings at the U.K. retailer after taking over four years ago, will become executive chairman and stay through 2011 as sales growth slows.

Rose will take over from Terry Burns, who is stepping down as non-executive chairman in June, and then retire three years later, Marks & Spencer, the biggest U.K. clothing retailer, said today in a statement. Shareholder Legal & General Group Plc called the plan ``unwelcome,'' saying the roles of chairman and CEO should stay separate.

Marks & Spencer shares tumbled in January after the company reported an unexpected drop in holiday sales. The setback was the retailer's biggest since Rose, 58, was appointed in 2004 to fend off a takeover bid by billionaire Philip Green. Rose had redesigned shops and used models in commercials to reverse a sales drop and said in November he planned expansion in Asia.

``If Stuart was to step down in the next year, he would be going out on a low note in the middle of a downturn,'' said analyst Nick Bubb at Pali International Ltd. in London. ``I think he wants to have another two years to get it back on track and see through the growth plan in China.''

Bubb, who has a ``neutral'' recommendation on Marks & Spencer, said he had expected an announcement on Rose's departure might come in the next year.

Less Uncertainty

Marks & Spencer fell 3 pence, or 0.8 percent, to 375 pence in London trading. The stock has slid by about a third this year.

The main reason for the change is ``to keep Stuart in the business until 2011,'' Burns, 63, said in a telephone interview.

``We are in a difficult economic environment,'' said Burns, who succeeded Paul Myners as chairman in July 2006. ``The aim has been to reduce uncertainty and speculation. June 2009 was the date Stuart had previously committed himself to stay.''

The changes will allow Rose to pass on responsibility for stores to Finance Director Ian Dyson and spend more time working on the company's products and on ``the development of the next generation of leaders,'' Burns said. They also will give the company time to find a successor, he said.

Dyson will be responsible for retail and personnel, according to Marks & Spencer, which appointed David Michels as deputy chairman.

`Concentration of Power'

Legal & General ``believe strongly in the separation of the roles of chairman and chief executive, believing that this provides a much needed balance in the boardroom, and prevents potentially damaging concentration of power,'' head of equities Mark Burgess said in an e-mailed statement. The insurer owns about 5 percent of Mark & Spencer's shares, data compiled by Bloomberg shows.

The retailer in January reported its first quarterly same- store sales drop in 2 1/2 years, and Rose said conditions would remain ``tough'' through 2008 as Britons face higher mortgage, tax, utility and grocery bills.

Marks & Spencer also appointed Kate Bostock and Steven Esom to the board as executive directors. Bostock will be responsible for all clothing excluding the Per Una range, while Esom will continue to oversee food.

Those appointments and the change to Dyson's role take place immediately. Both Bostock and Esom, a former executive at food retailer Waitrose, have been mentioned by analysts as future CEO candidates.

Guy Farrant will step down as director of retail after 30 years with the company, while Tony Quinlan, director of financial control, Simon Ratcliffe, director of logistics, and Jude Bridge, marketing communications director, also will leave. Keith Cameron, director of human resources, will retire in April and his successor will be named ``shortly.''
Marks Chief Rose to Become Chairman, Stay Unti ...