M&S boss gets £600,000 bonus despite bleak results

Marks & Spencer chief executive Steve Rowe has been handed a near-£600,000 bonus despite annual profits tumbling by 64 per cent at the high street chain.

Steve Rowe took charge at Marks & Spencer in April last year. Picture: Adrian Brooks/Imagewise

The retail giant’s annual report revealed it paid Rowe £1.6 million in pay and bonuses, although all executive directors missed out on share awards under a long-term incentive plan after failing to hit targets.

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Rowe, who was promoted to his current role in April last year, picked up a £599,000 bonus on top of his £810,000 salary and £234,000 in pensions and benefits.

The report also showed he could be in line for a total pay package worth up to £4.7m in cash and shares over the year to April if all targets are met in full.

His pay details come just weeks after M&S reported a gloomy set of annual results, which showed profits diving by nearly two-thirds to £176.4m, while sales in its clothing arm also plunged back into reverse.

News of his bonus also follows controversial changes to M&S workers’ pay and pensions, although the group has pledged to top up salaries for those worse off as a result of the changes.

Rowe has been leading an overhaul at the group, announcing plans in November to close around 30 UK stores and convert 45 more into food-only shops, while also pulling out of ten international markets.