Marc Bolland, chief executive of Marks & Spencer, saw the value of his total pay package fall by 26 per cent last year after missing out on a bonus in the wake of sliding profits.
The retailer, which last month reported its third consecutive fall in annual earnings, said Bolland and his fellow directors had declined a pay rise, although salaries for its UK employees grew by an average of 2 per cent.
In its annual report, published today, M&S said its chief executive received £1.58 million in salary and benefits in its 2013-14 financial year, down from £2.14m a year earlier, when his pay package was boosted by an £829,000 bonus.
The high street stalwart said in May no-one in the company would receive a bonus this year as performance targets had not been met. It was the first year its boss had not received a bonus since taking over from Sir Stuart Rose in 2010.
Bolland has been under pressure as the retailer’s performance has faltered, despite a £2.3 billion investment drive over the past three years, the hiring of new fashion executives and a celebrity-driven marketing push.
Underlying pre-tax profits fell nearly 4 per cent to £623m last year, a period that chairman Robert Swannell described as “mixed” in the annual report.
He said: “Our priority now is to deliver on the investment we have made and to make M&S more profitable, as well as a stronger, well-equipped business. There is real potential for further profitable growth, both in the UK and overseas.”
Meanwhile, Sainsbury’s said outgoing boss Justin King took a pay cut after the supermarket chain delivered its weakest sales growth for nine years amid pressure from discount rivals.
King, who became chief executive in 2004 and is due to hand over the reins to commercial director Mike Coupe next month, was paid just under £4m in salary and bonuses last year, down from £4.4m a year earlier.
Coupe takes over following the group’s annual meeting on 9 July and will receive basic pay of £900,000 a year, up from his current £587,000 salary but lower than King’s £960,000 deal.