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Sir Stuart Rose, chairman of Marks & Spencer, got a 28% pay rise last year despite the retailing giant's profits crashing by 40% and almost all its 70,000 staff being told that they will receive no bonus.
Rose collected £1.76 million for the year which ended in March, up from the £1.38 million a year earlier.
This is despite the fact that none of the directors received any bonus in either year because they failed to hit their performance targets.
Shareholders also lost out in the last financial year when Rose and his board slashed their dividend payout by a third. The remuneration committee at M&S also revealed it decided that none of the executive directors should receive any increase in their basic pay as they normally do in January.
As the battle to succeed Rose hots up, the gap between the pay levels of the two internal contenders appears to have widened.
Ian Dyson, finance and operations director, received a 45% pay boost, with his total package just topping £1 million for the first time. His rival Kate Bostock, head of clothing, was only promoted to the board in March 2008. Her pay last year was £892,000.
Rose also received 473,000 free shares from the long-term bonus plan for 2004-05, which matured last year. That took his total stake in the company to 1.22 million shares, currently worth some £3.5 million.
Reader views (2)
M & S announce "2020 - Doing the right thing" as a new policy for being customer focused; but have ended In Store Ordering. But have they? Those who get a 28 % pay rise should not have stores that exclude 30% of existing customers. Even the communications and display teams have placed "in store ordering has ended" publicity and leaflets in Southgate Simply Food at the same time that Food Platter orders and Flower Orders can still be placed at a Customer order Desk. When did Basil Fawlty retire?
- Donald Smith, London, 08/06/2009 12:14
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I've had a rubbish year too; can I have a bonus? Well no, actually, I'm self-employed: what I get paid depends on how my customers value my efforts, and how much money they have for more of them. As an M & S shareholder, I think that's a pretty fair ethos. No complaints at my end: what about you, Sir Stuart?
- Mdj E10, london uk, 05/06/2009 00:14
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