New M&S boss to get golden hello worth £3.9m

Marks & Spencer's new boss Marc Bolland will start in May on a near-£1 million salary and a "golden hello" worth £3.9 million in shares, the retailer announced today.

The former Morrisons chief executive has been released six months early from his 12 month contract with the supermarket to take on the top job at M&S on May 1.

His £975,000 salary is just short of current M&S boss Sir Stuart Rose's £1.13 million basic pay, but M&S said it would pay cash and shares awards worth up to a potential £6.3 million - including an "exceptional" long-term incentive award worth 400% of salary in his first year.

Mr Bolland will also pick up cash and shares payments worth £7.5 million in lieu of payments he would have received at Morrisons.



Mr Bolland's annual pay package includes a bonus worth up to 250 per cent of salary and a long-term incentive shares award which has been boosted to the maximum 400 per cent level as an initial joining perk.

His additional payments in lieu of awards due from Morrisons will see him pick up an immediate cash handout of £1.6 million and £1 million worth of shares, plus deferred share awards worth another £4.9 million.

Today's announcement comes after Morrisons named Dalton Philips, a former executive for US giant and ASDA owner Wal-Mart, as Mr Bolland's replacement last week.

M&S's incoming chief executive has been on gardening leave from Morrisons since early December and holding talks to negotiate an early departure.

He handed in his year's notice in November to join M&S and end the group's hunt for a successor to current chief executive and chairman Sir Stuart, who will stay on as part-time chairman.

Mr Bolland joined Morrisons in 2006 as chief executive and has transformed the once-ailing chain into the fastest growing of the big four grocers.

The 50-year-old Dutchman was previously chief operating officer at Heineken, based in the Netherlands.

He held a number of senior roles at Heineken over the past 20 years, including responsibility for brand and marketing strategies.

As part of Mr Bolland's turnaround strategy, Morrisons rebranded its stores, launched an advertising campaign featuring celebrities Denise Van Outen and Richard Hammond and staged promotions such as Sunday lunch for four for £4.

Morrisons, which has about 400 stores and 124,000 staff, has outperformed the supermarket sector in recent months, notching up a 6.5 per cent leap in Christmas sales that trumped the 4.9 per cent seen at Tesco and the 4.2 per cent at Sainsbury's.

It also recently stepped up its expansion with the acquisition of stores from the Co-operative Group following the latter's takeover of Somerfield.

His appointment at M&S was hailed as a coup by experts, while it also ended uncertainty over Sir Stuart's succession plans, which had been the subject of speculation since he stated his intention to leave the company by July 2011 at the latest.

The relationship between M&S and its shareholders was under strain due to Sir Stuart's appointment as executive chairman - combining two roles in breach of corporate best practice - more than a year ago.

Start your day with The Independent, sign up for daily news emails
Life and Style
health
Life and Style
Steve Shaw shows Kate how to get wet behind the ears and how to align her neck
healthSteven Shaw - the 'Buddha of Breaststroke' - applies Alexander Technique to the watery sport
Life and Style
tech
Arts and Entertainment
The sight of a bucking bronco in the shape of a pink penis was too much for Hollywood actor and gay rights supporter Martin Sheen, prompting him to boycott a scene in the TV series Grace and Frankie
tv
Arts and Entertainment
Lena Headey as Cersei Lannister
TVSPOILER ALERT: It's all coming together as series returns to form
News
news
Sport
footballShirt then goes on sale on Gumtree
Voices
Terry Sue-Patt as Benny in the BBC children’s soap ‘Grange Hill’
voicesGrace Dent on Grange Hill and Terry Sue-Patt
Arts and Entertainment
Performers drink tea at the Glastonbury festival in 2010
music
Arts and Entertainment
Twin Peaks stars Joan Chen, Michael Ontkean, Kyle Maclachlan and Piper Laurie
tvName confirmed for third series
Sport
Cameron Jerome
footballCanaries beat Boro to gain promotion to the Premier League
News
ebookA unique anthology of reporting and analysis of a crucial period of history
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

Guru Careers: Software Developer / C# Developer

£40-50K: Guru Careers: We are seeking an experienced Software / C# Developer w...

Neil Pavier: Management Accountant

£45,000 - £55,000: Neil Pavier: Are you looking for your next opportunity for ...

Sheridan Maine: Commercial Accountant

£45,000 - £55,000: Sheridan Maine: Are you a newly qualified ACA/ACCA/ACMA qua...

Laura Norton: Project Accountant

£50,000 - £60,000: Laura Norton: Are you looking for an opportunity within a w...

Day In a Page

Abuse - and the hell that came afterwards

Abuse - and the hell that follows

James Rhodes on the extraordinary legal battle to publish his memoir
Why we need a 'tranquility map' of England, according to campaigners

It's oh so quiet!

The case for a 'tranquility map' of England
'Timeless fashion': It may be a paradox, but the industry loves it

'Timeless fashion'

It may be a paradox, but the industry loves it
If the West needs a bridge to the 'moderates' inside Isis, maybe we could have done with Osama bin Laden staying alive after all

Could have done with Osama bin Laden staying alive?

Robert Fisk on the Fountainheads of World Evil in 2011 - and 2015
New exhibition celebrates the evolution of swimwear

Evolution of swimwear

From bathing dresses in the twenties to modern bikinis
Sun, sex and an anthropological study: One British academic's summer of hell in Magaluf

Sun, sex and an anthropological study

One academic’s summer of hell in Magaluf
From Shakespeare to Rising Damp... to Vicious

Frances de la Tour's 50-year triumph

'Rising Damp' brought De la Tour such recognition that she could be forgiven if she'd never been able to move on. But at 70, she continues to flourish - and to beguile
'That Whitsun, I was late getting away...'

Ian McMillan on the Whitsun Weddings

This weekend is Whitsun, and while the festival may no longer resonate, Larkin's best-loved poem, lives on - along with the train journey at the heart of it
Kathryn Williams explores the works and influences of Sylvia Plath in a new light

Songs from the bell jar

Kathryn Williams explores the works and influences of Sylvia Plath
How one man's day in high heels showed him that Cannes must change its 'no flats' policy

One man's day in high heels

...showed him that Cannes must change its 'flats' policy
Is a quiet crusade to reform executive pay bearing fruit?

Is a quiet crusade to reform executive pay bearing fruit?

Dominic Rossi of Fidelity says his pressure on business to control rewards is working. But why aren’t other fund managers helping?
The King David Hotel gives precious work to Palestinians - unless peace talks are on

King David Hotel: Palestinians not included

The King David is special to Jerusalem. Nick Kochan checked in and discovered it has some special arrangements, too
More people moving from Australia to New Zealand than in the other direction for first time in 24 years

End of the Aussie brain drain

More people moving from Australia to New Zealand than in the other direction for first time in 24 years
Meditation is touted as a cure for mental instability but can it actually be bad for you?

Can meditation be bad for you?

Researching a mass murder, Dr Miguel Farias discovered that, far from bringing inner peace, meditation can leave devotees in pieces
Eurovision 2015: Australians will be cheering on their first-ever entrant this Saturday

Australia's first-ever Eurovision entrant

Australia, a nation of kitsch-worshippers, has always loved the Eurovision Song Contest. Maggie Alderson says it'll fit in fine