Food, drink and shareholder votes

By Nick Cosgrove Business reporter, BBC News, at the M&S AGM in London

M&S shareholders queuing to enter the AGM

Never mind Henley, Wimbledon, or Ascot, one of the events of the summer is Marks & Spencer's (M&S's) annual general meeting (AGM).

There has been renewed interest this year, because of the controversy surrounding Sir Stuart Rose taking up both the chairman and chief executive roles.

In the run up to the AGM, shareholder pressure groups had come forward to express their displeasure with the current arrangement.

So it came as a surprise when arriving at the AGM and talking to the queuing shareholders that I could find almost no dissent.

The private shareholders are a loyal bunch, fiercely proud of M&S and the values it stands for.

Once they got inside the conference hall they were rewarded with a huge buffet, featuring the best of M&S food.

The pork pies at this event are legendary, but there were also sandwiches, beer and wine bars, cake stalls, and fruit and veg stands.

Green bra

After filling up on M&S goodies, the shareholders made their way upstairs to the auditorium.

On arrival they received electronic voting handsets, rather as if they were about to take part in a TV game show.

First up to the podium was the main man, Sir Stuart, but within a few minutes he had moved off the stage in order to demonstrate a raft of the latest M&S products.

Ever the showman, Sir Stuart soon had them eating out of the palm of his hand.

To much amusement, he pulled out the famous green bra featured in the recent advertising campaign launched when M&S backed down over charging extra for larger-sized brassieres.

"I'm not going to put this on," he says as he picks up the bra to much laughter.

Sir Stuart glowed as he remarked how the ad campaign had been a success.

"We increased our market share by 1% as a result."

Then Sir David Michels, deputy chairman, and a man who has expressed an interest in succeeding Sir Stuart stood up to make his speech.

He gave a ringing endorsement of the controversial stand that the company had taken in giving Sir Stuart both top jobs.

Sir David said it was the right thing for M&S to do at that time - March 2008 - and it remains so today.

Diverse questions

Then a string of questions from the audience followed.

Even Councillor Ian Greenwood praised Sir Stuart

It was quite a surprise to hear that the first question was about the availability of GM food in M&S stores.

Other questions followed: everything from availability of thermal underwear for gentlemen to criticism that M&S doesn't appeal to people in their late twenties.

Although some questions were critical of the chairman, others were highly praising.

One shareholder, Barry Hyman, told Sir Stuart: "You have grown up with this business, why the hell won't the City leave you alone to get on with running it?"

One questioner even congratulated Sir Stuart on getting rid of the post of chairman, before going on to deride the state of in-store toilets.

Key vote

And then we moved on to the decisive vote.

Sir Stuart has lived to fight another day

While almost all of the motions were carried by North Korean style majorities, it then came to the last motion on the table - that M&S should get a new chairman.

Yet even when its sponsor, Councillor Ian Greenwood, stood up to speak in its favour, he still gave his backing to Sir Stuart, telling him that he was doing a good job of running the company.

In the end, although over a third of the shareholders voted for the motion, the bloody nose many had anticipated was not delivered.

Shareholder Graham Samuel, a former executive at M&S who voted in favour of the chairman and chief executive roles being split, said that while the vote was defeated, there had been "a very strong challenge".

"Although it was defeated, it was a wake up call for the board," he says.

Shareholders left the AGM with a Marks and Spencer's goodie bag, generally content that the company they love is still in good hands.

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