Marks & Spencer boss sees pay shrink

Marks & Spencer boss Stuart Rose saw his annual pay package shrink by nearly £1m (€1.25m) after the retail giant failed to hit annual performance targets, it was disclosed today.

The chain reported last month that its profits topped £1bn (€1.25m) for the first time in a decade, but Rose received no extra cash bonus on top of his £1.13m (€1.4m) salary as earnings fell short of internal goals.

Details of Rose's salary are outlined in the group's annual report, which shows that he earned £1.375m (€1.7m) in pay and benefits in the year to March 31, compared with £2.3m (€2.9m) seen in the previous 12 months.

However, Rose - 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 (€2.3m), 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.

Rose replaced Terry 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 Rose would not receive a pay rise for taking on the new role.