Earnings blow for embattled Bolland

Embattled Marks & Spencer boss Marc Bolland has seen his earnings cut by more than a quarter after missing out on his bonus and declining a pay rise for the fourth year in a row.

Marc Bolland has seen his earnings fall.
Marc Bolland has seen his earnings fall.

Mr Bolland's pay package was cut by 26% to £1.59 million in 2013/14, compared to £2.14 million in 2012/13, the firm said in its annual report released today. His basic salary was unchanged at £975,000.

Last month chief executive Mr Bolland said its senior directors and its 82,000 staff would not receive a bonus this year after profits at the business fell for the third year in a row.

Marks & Spencer said last month its underlying pre-tax profits for the year to the end of March fell 3.9% to £623 million, their lowest level since 2009.

Mr Bolland, a former Morrisons chief executive, has spent £2.3 billion over the last three years upgrading the firm's stores, revamping its womenswear and investing in its online business. Yet, the retailer's performance has stuttered.

The last time that a discretionary bonus for shop floor staff at M&S was not paid was in the 2008/9 financial year, a period covering the height of the recession when underlying pre-tax profits fell to £604.4 million.

However, the retailer said salaries for all employees in the UK below director level increased by an average 2% last year.

Mr Bolland will, however, be paid around £278,000 in share options this year as part of a three-year performance share plan, which began in 2011.

Mr Bolland only received 7.6% of the share options the scheme entitled him to because he failed to hit targets relating to the firm's earnings per share, return on capital and its UK revenues. The only thresholds he crossed relate to the firm's multi-channel and its international business. These shares will vest on July 25.