Jun 5, 2014
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M&S chief Bolland takes 26 pct pay cut

Jun 5, 2014

LONDON, United Kingdom - 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 percent pay cut after missing out on a bonus and declining a pay rise.

In its annual report published on Thursday, M&S, Britain's biggest clothing retailer, said Bolland was paid a total of 1.58 million pounds ($2.7 million) in its 2013-14 fiscal year, down from 2.14 million 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 bonus 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 pounds salary has not risen since his appointment in 2010.

By contrast, salaries for all employees in the UK were increased by an average 2 percent, the report said.

Bolland has spent 2.3 billion pounds 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 percent fall in underlying pretax profit for the year to March 29, its third straight decline, and warned its new website would dent first-quarter sales figures as it "settles in".

$1 = 0.5969 British Pounds

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