View from City Road: In with the new, out with the old

SHAREHOLDERS should make it a new year's resolution - vote out the oldies] There is no good reason for allowing chairmen and chief executives of public companies to continue in office after they have reached the age of 70.

Many elderly bosses appear to have lost none of their spark - Sidney Mason, the 72-year-old chairman of Hammerson, and Lord Hanson, 70, are cases in point. But shareholders still run the risk of a sudden change at the top, if their companies have not planned the succession. Mr Mason revealed over the weekend that he intends to stay put until 1994 or later, while Lord Hanson plans to remain in office until 1997.

Shareholders in companies run by other elderly men have been less fortunate. Sir Ian MacGregor long ago lost the star status he held when he was hired at taxpayers' expense to head British Steel and what was then the National Coal Board, thanks to the performance of Hunterprint, recently refinanced, and Mountleigh, the property company, which collapsed. Despite his recent record and his 80 years, he remains chairman of Holmes Protection, where the shares underperformed by 60 per cent last year.

Tiny Rowland, 75, is possibly the best reason for not investing in oldie companies. Not only have Lonrho's shares performed as badly as those of Holmes Protection but Mr Rowland has also arranged a deal that has allowed him - but not other shareholders - to sell out above the market price.

Company doctors also appear to believe they can go on long past pension age. Sir Ian Morrow, chairman of MAI, the money broker, has recently taken on tough jobs at Harland Simon and Walbrook Insurance, despite his 80 years. And Sir Lewis Robertson remains chairman of Stakis, the hotel company, at 70.

Many of the oldies are founders who remain on letter heading, more out of recognition of their past achievements than to indicate continuing power. Lord Forte, 84, became president of the hotel company that bears his name last year. The same happened to Lord Delfont, one year younger, at First Leisure, but in this case 74-year-old Lord Rayne took the chair. Sir Tom Cowie remains chairman of the car dealer at 70.

The law requires the appointment of directors over 70 to be approved at a shareholders' meeting. Do not waste your vote]