Dixon leads M&S race after board promotion

Marks & Spencer reignited speculation about who will be its new chief executive by promoting John Dixon, its head of food, to the board yesterday.

Mr Dixon was only appointed director of food in July 2008, but has emerged as the main internal contender to succeed Sir Stuart Rose. The retailer's executive chairman, who has been lambasted for his dual role – which breaches best practice on corporate governance – will step down as chief executive no later than July 2010.

While Mr Dixon's star is on the rise, many in the City believe that M&S would be wise to look externally for a more experienced retailer or industry outsider. The chief executives of the grocers Sainsbury's and Asda, Justin King and Andy Bond, respectively, as well as Charles Wilson, the chief executive of the cash and carry operator Booker, are often cited as havingwhat it takes to do the job. It is understood that M&S has already handed the brief of filling arguably the biggest role in the sector to Jan Hall, at the headhunter JCA.

The other most prominent internal candidates at M&S are Ian Dyson, the retailer's finance and operations director, and Kate Bostock, its executive director of general merchandise, which is dominated by clothing.

Mr Dixon joined M&S in 1986 as a store management trainee and was also an executive assistant shadowing Sir Stuart for two years. He has also held senior roles including director of home and M&S Direct.

Sir Stuart said: "Since becoming director of food, John and his team have greatly improved our food business, changed perceptions of our value, and introduced a host of hugely popular innovations." But Tony Shiret, an analyst at Credit Suisse, said: "Mr Dixon is not the right man for the job. M&S has been struggling since the mid-1990s and it will take a special type of person."

He added: "Mr Dixon has been the PA to Sir Stuart and has been in charge of food for one year, and during that time he has been throwing cash at promotions to get like-for-like sales heading in the right direction."

In other board changes, Steven Holliday has been appointed chair of the remuneration committee to succeed Louise Patten, who remains on the committee, which has been expanded from four to five members. More than 10.6 per cent of shareholders failed to back Ms Patten's re-election at the annual meeting in July.