Marks & Spencer’s Bolland Declines Pay Increase for Fourth YearPaul Jarvis
Marks & Spencer Group Plc Chief Executive Officer Marc Bolland declined to be considered for a pay increase for a fourth year running after the U.K.’s largest clothing retailer again fell short of targets.
Bolland’s total remuneration for the year ended March 29 fell 26 percent to 1.59 million pounds ($2.67 million) after he and all the company’s staff missed out on any bonus, Marks & Spencer said in its annual report published today. The CEO’s basic salary was unchanged at 975,000 pounds.
The grocer and general merchandiser has failed to meet sales and profitability goals set after Bolland joined in 2010. In his first year, the CEO forecast sales of as much as 12.5 billion pounds in the year through March 2014, a target he later cut to as much as 11.5 billion pounds. Last month, Marks & Spencer reported annual revenue of 10.3 billion pounds.
All the retailer’s executive directors asked not to be considered for a pay increase, according to the annual report. Directors entitled to payouts under a performance share plan will receive only 7.6 percent of the maximum amount they could have earned when the three-year plan reaches maturity in July.
Bolland, the former CEO of William Morrison Supermarkets Plc, has spent 2.3 billion pounds over three years on improving stores, revamping women’s wear offerings and reinventing the retailer’s online business -- so far without translation into higher profit.
A year ago, M&S targeted growth in gross margins of as much as 0.5 percentage point in general merchandise, a division that mostly comprises clothing. Instead, it reported a contraction of 1.1 percentage points, citing increased costs of discounting.
Marks & Spencer fell 0.5 percent to 448 pence at 11:39 a.m. in London. The stock has gained 3.6 percent this year.