ABI to gauge reaction of members over new M&S chief's pay

The ABI is expected to issue its guidelines a few weeks before the M&S annual general meeting in the summer.

It is normal for the ABI to speak to members about high profile chief executive appointments and gauge their reactions.

The ABI represents insurers and investors who control a quarter of the UK's capital.

The 15m package for Mr Bolland, the former chief executive of Bradford-based Morrisons, has been defended by the retailer's current chief, Sir Stuart Rose.

Mr Bolland, who joins M&S as chief executive on May 1, will be given 7.5m in cash and shares to compensate for share schemes forfeited by leaving Morrisons.

Sir Stuart said: "If you're looking to get the right level of people and that is the market rate, you have to pay the market rate. If you look around that is what big retailer players are being paid at the moment."

Mr Bolland, who will be paid 975,000 in basic salary at M&S, will also receive a potential bonus worth 250 per cent of salary and a one-off award of shares worth a mammoth 400 per cent of basic pay.

Sir Stuart stressed that Mr Bolland would only gain the payouts if he beat City expectations, although he acknowledged that the issue of soaring executive pay was a "problem".

Mr Bolland joined Morrisons from brewing group Heineken in 2006 as chief executive.

Morrisons has named Dalton Philips, a former executive for Asda owner Wal-Mart, as Mr Bolland's replacement.