M&S chief Rose defends £15m deal for successor

Mr Bolland, the former head of Bradford-based supermarket chain Morrisons joins M&S as chief executive on May 1, and will get 7.5m in cash and shares to compensate for share schemes forfeited by leaving his old job.

Sir Stuart said: "At the end of the day, 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 400 per cent of basic pay. Sir Stuart stressed he would only gain the payouts if he beat City expectations, although he acknowledged that the issue of soaring executive pay was a problem.

"I recognise it's a problem, but it's not a Marks & Spencer problem, it's an industry problem being created by what shareholders have been saying – keep these guys with skin in the game."

Mr Bolland joined Morrisons from brewing group Heineken in 2006 as chief executive and has transformed the chain into the fastest-growing of the big four grocers.

M&S's incoming chief executive has been on 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.