Bonus cuts for retail bosses
Philip Clarke, head of rival Tesco, forewent his annual bonus last month, paying the price for a weak performance in the UK and heading off an outcry by investors increasingly critical of excessive executive pay.
Marks & Spencer’s annual report showed that chief executive Marc Bolland has taken the biggest pay cut to date among leading retailers.
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Hide AdM&S, Britain’s biggest clothing retailer, said Mr Bolland’s total pay and bonus package of just under £1.7m last year was over 60 per cent below the £4.4m he received the year before.
On top of a basic salary of £975,000, pension contributions and perks such as a car and driver, Mr Bolland received a bonus of £663,000 last year, which was roughly a third of his full entitlement of up to 200 per cent of salary.
Sainsbury’s said chief executive Justin King took a nine per cent cut in his overall package, despite the fact that Sainsbury’s reported a seven per cent rise in full-year profits last month that came in at the top end of expectations.
Mr King’s basic salary rose to £920,000 from £900,000 a year earlier, but his annual cash bonus, share awards and long-term incentive plan were all reduced, cutting his total package to just under £3.4m from £3.7m a year ago.
The cut comes amidst a round of high profile shareholder revolts over executive pay.