Boss goes without bonus as M&S misses targets

Marks & Spencer boss Stuart Rose missed out on a bonus last year after the troubled firm failed to hit any of its targets, it emerged today.

Mr Rose, who took over as chief executive a year ago, still pocketed £2.1m (€3.1m), including a £1.25m (€1.9m) signing-on fee.

It came after a year in which the troubled retailer saw profits slump by 19% and continued to lose market share to rivals on the high street.

The firm recruited Mr Rose as part of its attempts to see off a £9.1bn (€13.6bn) takeover proposal from billionaire Philip Green. It said at the time he would receive an annual salary of £850,000 (€1.3m), which could double if he hit targets.

In its annual report today, M&S revealed that Mr Rose received £708,000 (€1m) for the proportion of the year he was boss, but he was awarded no bonus.

A spokeswoman said the company failed to meet any of its targets based on pre-tax profits and other measures, while Mr Rose also missed his own personal goals. None of the present management team received a bonus.

M&S said it was proposing a series of changes to the bonus scheme. Under the plans, directors will get a bonus equivalent to 60% of their basic pay for hitting targets, compared with a potential 100% last time.

But this figure could rise to 150% if there is a “marked” improvement in profits against last year. Half of the bonuses will have to be invested as shares over a three-year period in an attempt to encourage directors to stay on.

M&S saw its total wages bill double to £9.7m (€14.5m) last year after a complete overhaul of its management team saw the departure of nine directors, including chairman Luc Vandevelde.

The sum included £3.7m (€5.5m) in termination payments and a signing-on fee of £900,000 (€1.3m) for executive director Charles Wilson.

Interim chairman Paul Myners, who is set to step down in 14 months, received £149,000 (€222,000).

Mr Rose admitted last month that the challenge of reviving M&S was more difficult than when he took the helm.

M&S blamed the fall in its annual profits to £618.5m (€922.5m) on having to slash prices to shift excess stock.