Rose in line for £2m pay-off if Green bid for M&S succeeds

Stuart Rose, the new chief executive of Marks & Spencer, will be entitled to a £2.1m pay-off if Philip Green's bid for the retail chain succeeds.

Stuart Rose, the new chief executive of Marks & Spencer, will be entitled to a £2.1m pay-off if Philip Green's bid for the retail chain succeeds.

M&S's boardroom clearout yesterday triggered a flurry of pay-offs and pay deals with the outgoing chairman Luc Vandevelde receiving more than £500,000 in M&S shares and Roger Holmes, the former chief executive, receiving a pay-off of more than £800,000.

Mr Rose said yesterday the M&S job was the culmination of his retail career, although he failed to stem speculation of a further management cull at the high street chain.

Asked if Vittorio Radice, the former Selfridges boss brought in by Mr Holmes to run M&S's clothing business, would be ousted, Mr Rose said: "I am talking to all the executives. I am an inclusive person. I don't believe that just because I am the chief executive I have exclusivity over good ideas.

"I'm a consensus manager but I believe in taking decisions and I think I am reasonably good at delegating. This is not a one-man show.

"This is not the Stuart Rose, M&S show. It's about leading a team of people."

However, Mr Rose may have to take some decisions more quickly than he would have liked. It is understood that Mr Green is planning to unveil details of his cash and shares offer for M&S tomorrow. He will point to the success of his turnarounds at Bhs and Arcadia as clear evidence of his ability to improve the prospects of M&S. Mr Green is thought to be willing to pay about 400p a share, valuing M&S at £9bn.

However, the details of the pay package agreed for Mr Rose, who has been brought in to fend off Mr Green's bid and improve M&S's operations, will reinforce his reputation as one of the country's luckiest businessmen, as well as one of its most effective operators.

M&S said Mr Rose would be paid a £1.25m golden hello to sign on with the company. This will be paid after he has been at the company six months or at the end of any offer period, whichever is the latest.

He will also get an annual salary of £850,000 - a substantial premium more than that of his predecessor - with a maximum bonus potential of 100 per cent of his base salary.

The company has agreed to give him 12 months' notice, should it wish him to quit which means a successful bid from Mr Green would see him receive his golden hello and also a full year's salary, bringing his pay-off to £2.1m. For his part, Mr Rose will be required to give M&S six months' notice of a decision to quit.

Mr Rose said: "Everybody needs a bit of luck and I don't deny I have had my fair share but I've also done my time at the coal face. I've done 33 years in retail, I would hope this is the culmination of my retail career."

Controversially, M&S is also proposing to give Mr Vandevelde, the outgoing chairman, a full 12-months' pay-off even though he has already agreed to stand down as chairman after admitting to not having enough time for the M&S job because of his widening circle of outside business interests.

The company said: "Luc Vandevelde will receive 12 months' payment in lieu of notice. As Luc is paid in shares, this will be 162,000 shares to be purchased within 14 days of 31 May 2004."

The takeover attentions of Mr Green has sent the M&S share price soaring in recent days. It ended trading yesterday at 365p, valuing Mr Vandevelde's pay-off at £591,300. Roger Holmes, the former chief executive of M&S who is making way for Mr Rose, will receive a £820,000 pay-off. Both Mr Vandevelde and Mr Rose are entitled to exercise their existing share options at anytime within the next 12 months.

Mr Rose is no stranger to the "lucky" tag. He has picked up substantial pay-offs wherever he has worked and Mr Green's apparent determination to win control of M&S means he may well enjoy another for doing only a short period of work.

However, having already spent 17 years at M&S previously in his career, Mr Rose said his experience of the inside of the company as well as working elsewhere would stand him in good stead to lead a recovery at the ailing retail chain.

Rose to riches

1997: Stuart Rose receives £600,000 when leaving Arcadia for the first time, having seen John Hoerner get the job of chief executive. Also bags £540,000 for three months' work after joining Argos and fighting a losing bid battle against GUS. Joins Booker, the cash and carry business

2000: Mr Rose quits Iceland, the frozen food group, after seeing the retailer buy out Booker triggering a £2.2m share option windfall for Mr Rose. He leaves to become the chief executive of Arcadia on a salary of £550,000 after Mr Hoerner is ousted.

2002: Philip Green agrees to pay 408p a share for Arcadia, leaving Mr Rose out of a job but richer by more than £25m thanks to a huge share option deal agreed when he took over the ailing Arcadia business.

2004: Mr Rose joins M&S, the company he sees as the culmination of his retailing career. He will receive a £1.25m signing-on fee and an annual salary of £850,000. His annual bonus will be up to 100 per cent of salary and his pay-off, should Mr Green or any other bidder succeed in buying M&S, will be £2.1m.

Suggested Topics
Life and Style
tech

Sales of the tablet are set to fall again, say analysts

News
A Brazilian wandering spider
news

World's most lethal spider found under a bunch of bananas

Life and Style
gaming

I Am Bread could actually be a challenging and nuanced title

News
Nigel Farage has backed DJ Mike Read's new Ukip song
i100
PROMOTED VIDEO
Life and Style
tech

Company decides to go for simply scary after criticising other sites for 'creepy and targeted' advertising

Sport
Mario Balotelli pictured in the win over QPR
footballInternet reacts to miss shocker for Liverpool striker
News
news

Footage shot by a passerby shows moment an ill man was carried out of his burning home

Voices
Sol Campbell near his home in Chelsea
voices
News
i100
News
Kimi the fox cub
newsBurberry under fire from animal rights group - and their star, Kimi
News
ebooksAn unforgettable anthology of contemporary reportage
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

Customer Service Executive / Inbound Customer Service Agent

£18 - 23k + Benefits: Guru Careers: We are seeking a Customer Service Executiv...

ASP.NET Web Developer / .NET Developer

£60 - 65k + Benefits: Guru Careers: We are seeking a ASP.NET Web Developer / ....

Operational Risk Manager - Asset Management

£60,000 - £80,000: Saxton Leigh: Our client is an leading Asset Manager based...

Project Coordinator - 12 month contract

£27000 - £32000 Per Annum: Clearwater People Solutions Ltd: Our large charity ...

Day In a Page

Oscar Pistorius sentencing: The athlete's wealth and notoriety have provoked a long overdue debate on South African prisons

'They poured water on, then electrified me...'

If Oscar Pistorius is sent to jail, his experience will not be that of other inmates
James Wharton: The former Guard now fighting discrimination against gay soldiers

The former Guard now fighting discrimination against gay soldiers

Life after the Army has brought new battles for the LGBT activist James Wharton
Ebola in the US: Panic over the virus threatens to infect President Obama's midterms

Panic over Ebola threatens to infect the midterms

Just one person has died, yet November's elections may be affected by what Republicans call 'Obama's Katrina', says Rupert Cornwell
Premier League coaches join the RSC to swap the tricks of their trades

Darling, you were fabulous! But offside...

Premier League coaches are joining the RSC to learn acting skills, and in turn they will teach its actors to play football. Nick Clark finds out why
How to dress with authority: Kirsty Wark and Camila Batmanghelidjh discuss the changing role of fashion in women's workwear

How to dress with authority

Kirsty Wark and Camila Batmanghelidjh discuss the changing role of fashion in women's workwear
New book on Joy Division's Ian Curtis sheds new light on the life of the late singer

New book on Ian Curtis sheds fresh light on the life of the late singer

'Joy Division were making art... Ian was for real' says author Jon Savage
Sean Harris: A rare interview with British acting's secret weapon

Sean Harris: A rare interview with British acting's secret weapon

The Bafta-winner talks Hollywood, being branded a psycho, and how Barbra Streisand is his true inspiration
Tim Minchin, interview: The musician, comedian and world's favourite ginger is on scorching form

Tim Minchin interview

For a no-holds-barred comedian who is scathing about woolly thinking and oppressive religiosity, he is surprisingly gentle in person
Boris Johnson's boozing won't win the puritan vote

Boris's boozing won't win the puritan vote

Many of us Brits still disapprove of conspicuous consumption – it's the way we were raised, says DJ Taylor
Ash frontman Tim Wheeler reveals how he came to terms with his father's dementia

Tim Wheeler: Alzheimer's, memories and my dad

Wheeler's dad suffered from Alzheimer's for three years. When he died, there was only one way the Ash frontman knew how to respond: with a heartfelt solo album
Hugh Bonneville & Peter James: 'Peter loves his classic cars; I've always pootled along fine with a Mini Metro. I think I lack his panache'

How We Met: Hugh Bonneville & Peter James

'Peter loves his classic cars; I've always pootled along fine with a Mini Metro. I think I lack his panache'
Bill Granger recipes: Our chef's heavenly crab dishes don't need hours of preparation

Bill Granger's heavenly crab recipes

Scared off by the strain of shelling a crab? Let a fishmonger do the hard work so you can focus on getting the flavours right
Radamel Falcao: How faith and love drive the Colombian to glory

Radamel Falcao: How faith and love drive the Colombian to glory

After a remarkable conversion from reckless defender to prolific striker, Monaco's ace says he wants to make his loan deal at Old Trafford permanent
Terry Venables: Premier League managers must not be allowed to dictate who plays and who does not play for England

Terry Venables column

Premier League managers must not be allowed to dictate who plays and who does not play for England
The Inside Word: Brendan Rodgers looks to the future while Roy Hodgson is ghost of seasons past

Michael Calvin's Inside Word

Brendan Rodgers looks to the future while Roy Hodgson is ghost of seasons past