Marks & Spencer chief Bolland takes 26% pay cutThursday 05 June 2014 13.32
Marks & Spencer boss Marc Bolland, under pressure to revive the British retailer's underperforming non-food business and halt falling profits, has taken a 26% pay cut after missing out on a bonus and declining a pay rise.
In its annual report today, M&S said Bolland was paid a total of £1.58m in its 2013-14 fiscal year, down from £2.14m a year before.
M&S had said in May that no-one in the company would receive a bonus this year as performance targets had not been met. The last time M&S did not pay any bonuses was in its financial year 2008-09.
The company also said Bolland, as well as its other executive directors, had requested not to receive a salary increase. Bolland's £975,000 salary has not risen since his appointment in 2010.
By contrast, salaries for all employees in the UK were increased by an average 2%, the report said.
Bolland has spent £2.3 billion over the last three years addressing decades of under-investment at M&S, aiming to transform it into an international retailer reaching customers through stores, the web and mobile devices.
Though he has spent heavily on redesigning products and stores and on overhauling logistics to complement a new internet platform, a new clothing team he set up in 2012 has so far failed to deliver a durable pick-up in sales.
The group in May posted a 3.9% fall in underlying pre-tax profit for the year to March 29, its third decline in a row, and warned its new website would dent first-quarter sales figures as it "settles in".