Marks & Spencer chief executive Mark Bolland’s take home pay dropped by 26% to £1.58m in 2013/14.
According to the retailer’s annual report, Bolland was paid £2.14m in 2012/13, but this was drastically reduced after he refused a pay review and missed out on a bonus because the company failed to meet its performance targets.
His fellow executive directors faced similar salary restrictions. Chief finance officer Alan Stewart was paid £915,000 in 2013/14, compared to £1.23m the previous year.
John Dixon, executive director for general merchandise, was paid £1.31m in 2012/13 and £950,000 in 2013/14.
M&S last month published its results for the year to March 29, 2014, which showed underlying pre-tax profit fell 3.9% to £623m, dropping below rival Next for the first time.
Group sales climbed 2.7% to £10.3bn, while UK sales rose 2.3%. This was powered by food, however, with general merchandise - which is mostly clothing and where much of the focus has been in the last 12 months - flat.
While salaries for all employees in the UK were increased on average by 2%, the executive directors requested not to be considered for any salary increase.
Steven Holliday, chairman of M&S’s remuneration committee, said: “While salaries for all employees in the UK were increased on average by 2%, the executive directors requested not to be considered for any salary increase.
“The committee believes in pay for performance and ensures that targets set are stretching and linked to those measures necessary to ensure the long-term success of M&S. Annual bonus measures are primarily ﬁnancial, but also include a number of non-ﬁnancial measures in order to ensure a balanced view of the company’s performance.
“While each director made good progress against their individual objectives, the underlying group proﬁt before tax achieved was below the threshold target set by the committee and so no bonus was therefore payable in respect of ﬁnancial or individual targets.”