Marks and Spencer has stuck its finger in the eye of corporate governance purists. Chief executive Sir Stuart Rose has been promoted to executive chairman and will hold that position until his planned retirement in 2011. It is quite a volte-face for the M&S board, which ousted its last temporary chairman for being too close to Sir Stuart. But that was before he became something of a hero after turning round the troubled high street store. Now total power appears to be his price for staying beyond 2009.

The shuffle also gives new operating responsibilities to number two Ian Dyson and adds two other potential internal candidates for the chief executive role to the board. The changes will leave the M&S board with a 6-5 ratio of outsiders to insiders – once the company hires an additional non-executive director. But new deputy chairman Sir David Michels, the lead independent director, could have his work cut out. General retailers like M&S are always at the mercy of consumer whims, and they need to be particularly flexible in weaker economic times. How comfortable would the board feel about challenging a strategy that is the brainchild of the man running the meeting?