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Retail boss gets the nod
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November 26, 1998: 5:06 a.m. ET
Marks & Spencer appoints new boss from 'old guard'
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LONDON (CNNfn) - Marks & Spencer, Britain's premier retailer, finally solved the succession problems which have dogged the company in recent weeks.
Peter Salsbury, managing director, will step up to the chief executive job in February.
Current chairman and chief executive Sir Richard Greenbury will remain as chairman.
Salsbury was the favorite for the job, but a damaging public battle for succession broke out recently, played out in the media.
Deputy chairman Keith Oates made a big pitch for the top job, but ultimately Salsbury, seen as Greenbury's choice, won out.
"The old guard has won," said one analyst.
Oates is leaving the company. He was seen as the outsider, despite having worked at the group for 14 years.
Salsbury has been with M&S (MKS) for 28 years, while the famously combative Greenbury joined M&S as a sales assistant 45 years ago.
The stock market gave a cool response to the new man, pushing Marks shares down by 4 percent to 429 pence.
"This is a bad message to give the market," said an analyst who did not wish to be named. "Oates' leaving is a blow because he built up the financial services side, and that's the only part doing well."
Analysts questioned whether Salsbury would be able to stand up to Greenbury in any boardroom disagreements, and pointed out that in his current role Salsbury is in charge of clothing at M&S, "which has just endured its worst season for years."
M&S shares have been hit hard by a slowdown in consumer spending and by the group's ambitious plans to expand overseas. The stock has missed out on the recent rally in European markets as the succession issue raised its head. The shares were at 542 pence in September, and reached a high of 664 pence about a year ago.
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Marks & Spencer
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