Marks & Spencer boss Marc Bolland missed out on a shares bonus worth a potential £2.9 million after the retailer delivered its worst annual profits for four years, but still earned a total pay package worth £2.1 million.
The group's annual report revealed rewards under a lucrative shares incentive plan were scrapped after disappointing annual results saw profits fall 6 per cent to £665.2 million - the lowest level since 2009 - amid a disastrous performance from its clothing lines.
The plan could have seen Mr Bolland land shares worth 300 per cent of his £970,000 salary. A similar long-term share plan awarded him £1.2 million last year.
He was still awarded an £829,000 cash and shares bonus although this was less than half the maximum potential amount, taking his total pay and benefits package to £2.1 million, down from £3.2 million the previous year.
Mr Bolland's pay deal has been in the spotlight after the group's recent annual results amid questions over his role at the group.
He has declined a pay rise for three years in a row since being appointed in 2010.
The chief executive recently dismissed suggestions that some investors want him to quit if he has not delivered on his turnaround plan in 12 months' time, saying such timeframes are irrelevant.
According to the report, the group's remuneration committee believed annual bonus payouts were appropriate "in the context of a challenging year for the business and the wider retail sector" and reflect progress towards achieving long-term strategic goals.
Outgoing director of marketing Steven Sharp was the next highest-paid boss below Mr Bolland, with a £1.4 million pay package after receiving a £531,000 annual bonus.
He recently announced he was stepping down to be replaced by Patrick Bousquet-Chavanne, a former Estee Lauder executive.
John Dixon - head of general merchandise, who was brought over from the successful food division - was paid £1.3 million in total, including a £546,000 bonus.
Mr Bolland has insisted his turnaround will start to bear fruit, but will take time to reverse hefty declines in clothes sales.
He said the incoming M&S autumn/winter range, which is the first developed by the new fashion team, had been well-received after being unveiled last month. It will go on sale later this summer.