Marks & Spencer boss Sir Stuart Rose saw his annual pay package shrink by nearly £1m sterling after the retail giant failed to hit annual performance targets, it was disclosed today.
The chain reported last month that its profits topped £1 billion for the first time in a decade, but Sir Stuart received no extra cash bonus on top of his £1.13 million salary as earnings fell short of internal goals.
Details of Sir Stuart's salary are outlined in the group's annual report, which shows that he earned £1.375m in pay and benefits in the year to March 31, compared with £2.3m seen in the previous 12 months.
However, Sir Stuart - who last week took on the dual role of chairman and chief executive in a controversial move - will next month pick up a shares-based bonus worth about £1.9m, based on today's share price, under a three-year long-term incentive plan.
He is also due to be awarded further shares under the next three-year plan, details of which will be given by the beginning of July, according to M&S.
Sir Stuart replaced Lord Burns as chairman on June 1, effectively taking on both positions at the helm of the retailer - a decision that raised eyebrows amid corporate governance concerns.
M&S made a number of concessions to appease angry shareholders and confirmed that Sir Stuart would not receive a pay rise for taking on the new role.
Sir Stuart has pledged to stay in charge of the retailer until July 2011. But he faces challenges in the year ahead with sales and margins coming under pressure.
