M&S ready to reject Higgs and seek FTSE 100 chairman, Myners says

Marks & Spencer is ready to disregard new guidelines on corporate governance best practice and appoint another chairman of a FTSE 100 company to chair its own board, according to Paul Myners, who became its interim chairman this week.

Marks & Spencer is ready to disregard new guidelines on corporate governance best practice and appoint another chairman of a FTSE 100 company to chair its own board, according to Paul Myners, who became its interim chairman this week.

Mr Myners said M&S would be willing, if necessary, to reject the findings of last year's review of corporate governance, carried out by Derek Higgs, the UBS adviser, which recommended that no person should chair more than one FTSE 100 company.

"I would not rule it out," Mr Myners said. "If I formed a view that we had found an outstanding candidate, I would go to the institutions and say, 'In my view we have found the right candidate, they are already at a large company but that can be managed'. We will consult with shareholders [about the candidates]. I think it is a good process."

The Higgs review, now part of the Combined Code on corporate governance, urges companies to comply. If they do not, they are required to explain their actions to shareholders.

The appointment of Stuart Rose, a leading retailer, as chief executive means M&S is expected to pick a business figure with a more general, non-retailing background as chairman, helping to widen its search parameters.

M&S is keen to press ahead with finding a permanent chairman following this week's bid approach from Philip Green, the Bhs entrepreneur. Mr Green was considering his options yesterday, having had his approach rejected and his legal advisers, Freshfields Bruckhaus Deringer, banned by the High Court from working on his bid.

Media questions about the Freshfields case led to incidents with journalists in which Mr Green cut short an interview with Channel 4 News and cancelled an interview with BBC2's Newsnight. Jon Snow, a presenter of Channel 4 News, said: "It's the first time I've ever been thrown out of an interview in 25 years of working in television."

Mr Green must either lobby shareholders directly on the merits of his bid or come back with an improved offer. Mr Myners said yesterday: "He needs to do a lot better than he has done so far."

In his search for a chairman Mr Myners is keen to avoid the humiliation suffered by J Sainsbury, forced to reverse the appointment of Sir Ian Prosser as its chairman to replace Sir Peter Davies when he retires next year. This is why Mr Myners will consult closely with shareholders about the candidates.

Sir Ian's appointment at Sainsbury's was not blocked because of a breach of corporate governance best practice but because of an investor backlash. However Mr Myners' bold stance on recruiting a chairman may embolden the likes of Sainsbury's into recruiting another FTSE 100 chairman.

Commenting on the problems of finding people to chair large companies, Mr Myners said: "Institutions might like to reflect on the practical consequences of the Combined Code saying one person should not chair more than one large company. At a stroke you eliminate 100 people from your search list. I speak with some experience being on the board of mmO ₂ as well, which has just been through the process.

"I think you are going to see more explaining going on from companies who will say they have found the best person for the job but that he or she is already chair of a big company."

M&S is being advised on its search for a chairman by Russell Reynolds, the headhunters. Names talked about include Archie Norman, the MP and ex-Asda boss, and Barbara Cassani, the former boss of Go Airlines, who recently stepped down from leading London's Olympics bid.