Marks & Spencer has slashed the pay of its top directors by up to a third.
Chief executive Steve Rowe’s earnings have dropped by more than half a million pounds, falling by 31.8% from £1.64m in 2016/17 to £1.12m in 2017/18, and the bonus of £599,000 paid out in 2016/17 was cut to zero. Rowe’s pay has been effectively frozen since he begin his tenure as chief executive in 2016.
The retailer also announced that no bonus had been paid across the entire executive team as profit before tax had been below the threshold to trigger the corporate bonus scheme. Bonus payments elsewhere in M&S were also cut.
Other senior directors whose pay packets shrunk include former chief marketer Patrick Bousquet-Chavanne, who left in February, and took home £777,000, down from £1,164,000 in 2016/17. Former CFO Helen Weir, who left M&S on 31 March, earned £826,000, compared with £1,253,000 the previous year.
M&S also announced plans to simplify its executive pay. Incoming CFO Humphrey Singer, who will begin his role in July, will have allowances for his pension and car removed from his employment arrangement.
Late last month M&S announced that non-executive director Richard Solomons was to step down from the board in July after three years.
Pre-tax profits at the retailer fell by 62% to £66.8m in the year to 31 March. This was attributed to one-off costs relating to its store closure programme, under which 100 stores will close by 2021.