Jun 6, 2013
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Marks & Spencer CEO's pay package falls one third

Jun 6, 2013

LONDON, England - The chief executive of Britain's largest clothing retailer Marks & Spencer saw his overall remuneration package fall by a third in 2012-13, a year when the firm posted its lowest annual profit since 2009.

Marc Bolland, who has been chief executive since 2010, received total remuneration of 2.14 million pounds ($3.29 million) in 2012-13, down from 3.2 million pounds in the previous year, the firm's annual report published on Thursday showed.

Marc Bolland, CEO of Marks & Spencer | Source: M&S

Though Bolland declined the M&S remuneration committee's offer of a 2 percent pay rise to his basic annual salary of 975,000 pounds, the third year running he has done so, he did accept a 25 percent rise in his bonus to 829,000 pounds.

The bonus was 42.5 percent of his maximum bonus potential of 200 percent of salary. Last year he received a bonus of 663,000 pounds, 32 percent of the maximum potential.

The annual bonus, half of which is paid in cash and half in deferred shares, is based on performance against pretax profit as well an individual targets.

In Bolland's case these included strengthening M&S's leadership team and increasing online and international sales.

The hit to Bolland's 2012-13 package came from the Performance Share Plan (PSP) awarded in 2010 not meeting performance criteria and lapsing in full.

Last year Bolland received 1.2 million pounds through the PSP.

The 129-year-old company is battling to reverse seven straight quarters of falling underlying sales in clothing and homewares.

However, M&S shares, up about 30 percent over the past year amid periodic bouts of bid speculation, hit a five-year high last month after new autumn/winter clothing ranges drew a positive response from analysts and fashion media.

The stock was down 0.4 percent at 452 pence at 12.50 GMT.

Last month Tesco, Britain's biggest retailer, said its executives would not receive a bonus in the 2013-14 year unless they can reverse a decline in profit.

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