City concern as Ritblat backtracks on decision to quit British Land

John Ritblat has no intention of stepping down from his chairman and chief executive roles at British Land next year, as previously indicated by the company, and he may well stay on for another three years.

In order to address shareholder concerns about corporate governance at the property group, Mr Ritblat told July's annual general meeting that he would split the two top jobs. In a briefing to journalists after the AGM, the company indicated that Mr Ritblat, 66, would step down next year after appointing two new non-executive directors. Mr Ritblat said at the time that he would leave the company before the roles of chairman and chief executive are split.

It now appears that Mr Ritblat is highly unlikely to step down next year and, unless he explicitly announces otherwise, he should be expected to remain at the helm for another three years.

Asked at a City function on Tuesday night whether he would he retire next year, Mr Ritblat told The Independent: "I never said that [I was stepping down]. I gave a simple statement at the AGM about separating the roles."

At the AGM, 28 per cent of shareholders voted against the re-election of Mr Ritblat, despite the concession that the two top jobs at the company would be split. However, as he was re-elected, he regards himself as entitled to keep his positions at the company for another three years, when he next comes up for re-election as a company director.

Laxey Partners, the British Land shareholder that led the sizeable revolt against Mr Ritblat, said shareholders had been "hoodwinked" at the annual general meeting. Laxey has written to the Financial Services Authority asking it to force British Land to clarify Mr Ritblat's position.

Colin Kingsnorth, the chairman of Laxey, said: "The immediate impression created by the AGM was that he would go sooner rather than later. Now it doesn't look that way. I believe that he'll now deal with this in three years time. Institutions were just told a story."

Analysts and investors have complained that the company has not provided a clear statement on the issue. There is much confusion over when Mr Ritblat will relinquish control of the company he has led for 30 years. Apart from Mr Ritblat's son, Nick, who is also on the British Land board, he has no obvious successor.

Andrew Penny, an analyst at JP Morgan, said: "We think there is uncertainty in the market place as to the timing of the concessions the company made at the time of the AGM."

As well as committing to split the roles at July's meeting, British Land also pledged to increase the size of the board and consider share buybacks. The growing realisation that nothing will change soon has pushed British Land shares down steeply since the AGM. The shares now stand at a 43 per cent discount to the company's net asset value, whereas the average property sector discount is 34 per cent.

Jeremy Anagnos, an analyst at Deutsche Bank, said: "Shareholders are interested in knowing what the [succession] timetable is. And it's in the company's interests to state what that is."

One major British Land shareholder said the company must spell out plans for splitting the top jobs by next year's annual general meeting.

"That's what we're expecting," said the fund manager. "There will be disappointment if there is not tangible progress at the next AGM. But we do understand that he [Mr Ritblat] is a very proud man and he does not want to go out with his tail between his legs."