Marks & Spencer boss lands £596,000 bonus

Marks & Spencer boss lands £596,000 bonus

Marks & Spencer boss Marc Bolland has seen his total pay package jump by nearly a third after landing a £596,000 bonus for delivering the retailer's first annual profits increase for four years.

The firm's annual report showed the bonus helped push Mr Bolland's total pay up 32% to £2.08m for the year to March 28, while he also picked up £193,000 worth of shares under a long-term performance plan - on top of a £975,000 annual salary, pensions and benefits.

Mr Bolland is also in line for a further potential £2.4m worth of shares under a long-term performance plan awarded this financial year, due to pay out in 2018 if targets are met.

Mr Bolland - who has been leading M&S since 2010 - missed out on an annual bonus in the previous financial year, as did the group's senior directors and 80,000 workforce after a profits tumble.

But the group's turnaround under Mr Bolland has finally started bearing fruit, with full-year results last month showing a better-than-expected 6.2% rise in underlying annual profits to £661.2m thanks to better fashion ranges and strong food sales.

Three other senior executives also secured seven figure pay packages, with head of food Steve Rowe paid £1.4m, head of general merchandise John Dixon picking up £1.1m and executive director of multichannel, Laura Wade-Gery, earning £1.04m, according to the annual report.

They were all awarded annual bonuses as well, while M&S confirmed eligible shop floor staff are also being paid bonuses after the past year's performance.

But while other senior directors will see their salaries increase by an average of 3% from next month, Mr Bolland has declined a pay rise for the fifth year in a row.

M&S has seen its share price surge by 28% over the past year after efforts to overhaul the business have started turning around its fortune.

Under Mr Bolland's leadership, M&S has poured billions of pounds of investment into the business, while clearing out its top fashion team, and recruiting celebrities for high-profile marketing campaigns.

Sainsbury's also published its annual report today revealing that new boss Mike Coupe missed out on an annual bonus after the supermarket posted its first loss in a decade.

His total pay package dropped to £1.5m in the year to March 14, down from £2m the previous year, despite being promoted to the top job last July.

Mr Coupe took over from long-standing predecessor Justin King at a tough time for the chain amid pressure from discounters Aldi and Lidl as well as damaging food price deflation.

Sainsbury's last month reported a £72m loss for the year to March 14, with the figure dragged lower by a one-off write-down of £628m on the value of its property estate.

But even when stripping out exceptional items, the grocer's 14.7% fall in underlying profits to £681 million was the first decline since the start of Mr King's successful turnaround strategy in 2005.

Like-for-like sales dropped 1.9% over the year and Mr Coupe warned food price deflation meant the chain did not expect an improvement this year.

Annual bonuses were not awarded to Mr Coupe or any senior directors for the year, although the chief executive was awarded £458,000 worth of deferred share awards, which will pay out in 2017, according to the annual report.

He also landed a 1.75% pay rise, taking his annual salary for the year to next March to £915,750 - up £15,750.

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