Sir Ken's Tussles
Profit warnings at Morrison – at Moneyweek.co.uk - the best of the week's international financial media.
After four profit warnings, it's becoming increasingly clear that something needs to change at Wm Morrison, says Camilla Palladino on Breakingviews.com.
And investors have realised just that, as weekend reports of a growing rift in the boardroom about the lack of change pushed the share price 1% lower yesterday, says DigitalLook. Now chairman Ken Morrison is under pressure to bring new non-executive blood into his boardroom. The problem is he's simply not moving fast enough.
Why? Sir Ken has made no secret of his disdain for non-executive directors, says Palladino. He only recently gave in to the idea when he appointed David Jones and Duncan Davidson to the board. The latter is alleged to have departed the group swiftly following tussles with Sir Ken himself.
Moreover, should Safeway Morrison's recent acquisition which has been blamed for the profit warnings continue to hamper Morrison's performance, it may be the task of the newly appointed non-executives to remove Sir Ken from his position, says Palladino.
How could the whole problem be resolved? By Sir Ken enticing "the very best non-executives" and managers onboard...and then spelling out a "succession strategy" that all would be happy with. If he doesn't, Sir Ken could be in danger of losing the backing of his investors.