M&S to pay Vandevelde £520,000 a year in shares for a three-day week

Marks & Spencer unveiled a trailblazing pay package for its chairman, Luc Vandevelde, yesterday, paying him in shares rather than cash in an attempt to avoid criticism for payments for failure.

Mr Vandevelde, who went part-time in January, will be paid 13,500 M&S shares each month for a modest working regime of up to three days a week. That equates to £520,000 a year at the present share price, making him one of the highest-paid chairmen in the FTSE100 index. But if the share price falls, Mr Vandevelde will suffer a pay cut.

Many major companies have been caught up in "fat cat" pay rows, with top executives enjoying big rises in pay and pension benefits at a time of falling stock markets.

M&S said its deal for the 52-year-old Mr Vandevelde was in the best interests of shareholders after two years when his big bonuses have been criticised. "We believe it is right for him and it will be of benefit to all shareholders," a spokes-woman said. "He was the architect of our turnaround."

M&S will continue to pay for Mr Vandevelde's hotel when he is in London. But under the terms of his deal he will not be eligible for bonus payments or pension contributions.

Mr Vandevelde, who earned £1.7m last year, will be hoping to avoid the painful precedent provided by Peter Giller, the former chief executive of the electricity giant, International Power. He struck a deal in 2000 to be paid entirely in shares. But the share price collapsed meaning a pay packet that was originally worth £677,000 a year, ended up being worth just £190,000. The deal left him among the worst-paid chief executives of a major company, and Mr Giller joked that he and his wife got by on half-price chicken bought at supermarkets just before they closed. Last year he was moved to deputy chairman, then left the company.

A more positive example might be Allan Leighton, the Royal Mail chairman. He was appointed chairman of the internet travel company lastminute.com in October 2000. He struck a deal that gave him no basic salary but a million share options instead. These were priced at 137.5p but rapidly became worthless after the stock sank to 18.75p as the dot.com bubble burst. Now, after a rapid recovery which has seen the shares soar to 186.25p, his options are worth £500,000.

Mr Vandevelde, a Belgian, has overseen a dramatic turnaround in M&S's fortunes since he joined in 2000. He brought in Roger Holmes as chief executive and helped stabilise the high street giant.

Suggested Topics
PROMOTED VIDEO
Arts and Entertainment
Stik on the crane as he completed the mural
art
News
Happy in his hat: Pharrell Williams
people
News
i100(More than you think)
News
Phyllis Dorothy James on stage during a reading of her book 'Death Comes to Pemberley' last year
peopleJohn Walsh pays tribute to PD James, who died today
News
peopleExclusive: Maryum and Hana Ali share their stories of the family man behind the boxing gloves
Arts and Entertainment
John Hurt will voice Prince Bolkonsky in Radio 4's War and Peace
radioRadio 4 to broadcast 10-hour adaptation of War and Peace on first day of 2015
News
ebooksNow available in paperback
Latest stories from i100
Have you tried new the Independent Digital Edition apps?
Independent Dating
and  

By clicking 'Search' you
are agreeing to our
Terms of Use.

iJobs Job Widget
iJobs Money & Business

Argyll Scott International: Service Desk Analyst

£20000 - £22000 per annum: Argyll Scott International: Service Desk Analyst Re...

Argyll Scott International: 2x Service Desk Analyst

£20000 - £22000 per annum: Argyll Scott International: Service Desk Analyst Re...

Recruitment Genius: Senior Execution Trader

£30000 - £250000 per annum: Recruitment Genius: A global Rolling Spot FX, Comm...

Citifocus Ltd: ACA - Financial Reporting

£Attractive Package: Citifocus Ltd: Chartered accountant (ACA or CPA), must be...

Day In a Page

Cameron, Miliband and Clegg join forces for Homeless Veterans campaign

Cameron, Miliband and Clegg join forces for Homeless Veterans campaign

It's in all our interests to look after servicemen and women who fall on hard times, say party leaders
Millionaire Sol Campbell wades into wealthy backlash against Labour's mansion tax

Sol Campbell cries foul at Labour's mansion tax

The former England defender joins Myleene Klass, Griff Rhys Jones and Melvyn Bragg in criticising proposals
Nicolas Sarkozy returns: The ex-President is preparing to fight for the leadership of France's main opposition party – but will he win big enough?

Sarkozy returns

The ex-President is preparing to fight for the leadership of France's main opposition party – but will he win big enough?
Is the criticism of Ed Miliband a coded form of anti-Semitism?

Is the criticism of Miliband anti-Semitic?

Attacks on the Labour leader have coalesced around a sense that he is different, weird, a man apart. But is the criticism more sinister?
Ouija boards are the must-have gift this Christmas, fuelled by a schlock horror film

Ouija boards are the must-have festive gift

Simon Usborne explores the appeal - and mysteries - of a century-old parlour game
There's a Good Girl exhibition: How female creatives are changing the way women are portrayed in advertising

In pictures: There's a Good Girl exhibition

The new exhibition reveals how female creatives are changing the way women are portrayed in advertising
UK firm Biscuiteers is giving cookies a makeover - from advent calendars to doll's houses

UK firm Biscuiteers is giving cookies a makeover

It worked with cupcakes, doughnuts and macarons so no wonder someone decided to revamp the humble biscuit
Can SkySaga capture the Minecraft magic?

Can SkySaga capture the Minecraft magic?

It's no surprise that the building game born in Sweden in 2009 and now played by millions, has imitators keen to construct their own mega money-spinner
The King's School is way ahead of the pack when it comes to using the latest classroom technology

Staying connected: The King's School

The school in Cambridgeshire is ahead of the pack when it comes to using the latest classroom technology. Richard Garner discovers how teachers and pupils stay connected
Christmas 2014: 23 best women's perfumes

Festively fragrant: the best women's perfumes

Give a loved one a luxe fragrance this year or treat yourself to a sensual pick-me-up
Arsenal vs Borussia Dortmund: Alex Oxlade-Chamberlain celebrates century with trademark display of speed and intuition

Arsenal vs Borussia Dortmund

The Ox celebrates century with trademark display of speed and intuition
Billy Joe Saunders vs Chris Eubank Jnr: When two worlds collide

When two worlds collide

Traveller Billy Joe Saunders did not have a pampered public-school upbringing - unlike Saturday’s opponent Chris Eubank Jnr
Homeless Veterans Christmas Appeal: Drifting and forgotten - turning lives around for ex-soldiers

Homeless Veterans Christmas Appeal: Turning lives around for ex-soldiers

Our partner charities help veterans on the brink – and get them back on their feet
Putin’s far-right ambition: Think-tank reveals how Russian President is wooing – and funding – populist parties across Europe to gain influence in the EU

Putin’s far-right ambition

Think-tank reveals how Russian President is wooing – and funding – populist parties across Europe to gain influence in the EU
Tove Jansson's Moominland: What was the inspiration for Finland's most famous family?

Escape to Moominland

What was the inspiration for Finland's most famous family?