Marc Bolland pockets £2.5m despite profits fall at Marks & Spencer

 

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The Independent Online

Marc Bolland, the chief executive of Marks & Spencer, will pick up a bumper package of £2.5m this year, despite presiding over a fall in annual profits.

The total pay awarded to the Dutchman, who took the helm at the high street stalwart in May 2010, is likely to sharply contrast with a fall in the annual bonus for the 78,000 staff at M&S.

Mr Bolland's payout could also cause consternation at the retailer's annual meeting next month, given the recent fall in its profits and backtracking on long-term sales targets.

Pre-tax profits fell by 1 per cent to £705.9m for the year to 31 March, dragged down by a lacklustre performance in womenswear.

The M&S boss was paid a total of £2.5m last year, including a salary of £975,000, a cash bonus of £332,000 and the same amount in deferred shares that can be exercised in 2015.

His payout also includes shares worth £500,000 that vested in December, in addition to an award for the same sum that he can exercise in June. In addition, he has been granted more than 3 million share options under a series of incentive schemes linked to performance targets until 2014.

But Mr Bolland's total payout is down on the £4.96m he received in 2010/11, which was largely bumped up by the £2.6m compensatory award, or "golden hello", he received for leaving his previous employer, Morrisons.

Meanwhile, Sainsbury's chief executive Justin King saw his total pay fall 9 per cent last year after the grocer missed sales targets, but he still picked up a total package of over £3m.

Mr King, who took the helm at Sainsbury's in March 2004, oversaw a 7.1 per cent rise in profits to £712m at the grocer in the year to 31 March.

Despite outperforming the market, Sainsbury's did not hit its own internal targets on like-for-like sales.

As a result, Mr King's total pay, including share awards, fell to £3.37m last year. He pocketed a salary of £920,000, a bonus of £514,000, and £735,000 under his long-term share incentive plan, although half of this is deferred for a further year.

Mr King also received £897,000 in long-term deferred shares.

Sainsbury's is next week set to post a rise of more than 2 per cent in its first-quarter, underlying sales.

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