• Ivan Gazidis tells AGM that club is well placed for success • Shareholder accuses him of putting balance sheet first

Arsenal's chief executive Ivan Gazidis has defended his approach to running the club after being accused of putting their balance sheet before footballing success.

Speaking at the club's annual meeting, Gazidis insisted Arsenal will be able to compete with the world's biggest and best clubs as Uefa's financial fair play regulations become more rigorously enforced.

Arsenal slumped to a 2-0 home defeat by Schalke in the Champions League on Wednesday, which followed the loss at Norwich at the weekend which left them 10 points behind the Premier League leaders Chelsea.

The lacklustre displays have again brought the future of Arsène Wenger's side into question, as they look to recover from the £24m summer sale of their captain Robin van Persie to Manchester United and to end a trophy drought which now runs back to the 2005 FA Cup.

However, Gazidis rejected a claim from one shareholder that Gazidis was "ruining the club" by focusing on the balance sheet above all else.

Gazidis said: "In the next two years, we will have the financial resources to sit and compete among the leading clubs in the world, which is an extraordinary achievement.

"Financial success is relevant because it supports our football vision… the money we make is made available to our manager and he decides how to invest those funds. Arsène has done a magnificent job against the spending of our major competitors."

Flanked by the chairman Peter Hill-Wood and the majority shareholder Stan Kroenke, but not by Wenger who had been due to speak, Gazidis said: "Our ambition is shared by everybody at this table, the whole board and by everyone in this room.

"It is all about football, to compete at the top of the game here and in Europe to win trophies and do it in a way which makes fans proud and reflects our values, and also protects Arsenal for the long term."

Kroenke, known as "Silent Stan" for being very much in the background, addressed a question on whether dividends were to be paid to shareholders.

The American businessman, whose group also owns the US sports franchises Denver Nuggets of the NBA, Colorado Rapids of Major League Soccer, Colorado Avalanche of the NHL and the NFL side St Louis Rams, said: "This club is run through the board. I have always been respectful of that process.

"Aside from that, as majority shareholder it is clear we have a record in sports around the world and you can look at our record with our other clubs. We have never put any debt on this club for acquisitions [during the takeover] and never said money was not available to spend. We acquire through our own resources."

Kroenke, who completed his takeover of Arsenal's parent holding company in 2011, added: "I have one regret with Arsenal and that is that I did not get involved earlier.

"We have a record of reinvestment in our other clubs and it is there for everyone to see."