Marks and Spencer boss Steve Rowe takes home slimmer pay package than predecessor

 
Helen Cahill
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M&S has had to restructure its business (Source: Getty)

Steve Rowe, chief executive of Marks and Spencer (M&S), has received a substantially slimmer pay package than his predecessor, the retailer's annual report has revealed today.

For the financial year ending April 2017, Rowe's pay package came to £1.64m. His basic salary was £809,000 and he also received a bonus of £599,000.

The former chief executive of M&S, Marc Bolland, was rewarded £975,000 as a bonus, however.

Read more: Marks & Spencer reports 63.5 per cent slump in pre-tax profits

And, in his final year at the helm, Bolland pocketed £2.04m, after presiding over a substantial drop in M&S' clothing arm.

All of M&S' executive directors were in line for a two per cent pay rise , but turned it down because they were conscious that many of their staff members had had to face pay changes over the past year.

M&S revealed today that its chief executive's salary had fallen by 17 per cent year-on-year, with his benefits and annual bonus down by 12 per cent and 8.7 per cent respectively.

Meanwhile, the base salary of M&S employees fell by 1.1 per cent. Their benefits fell by 12 per cent on average, and their average bonus rose 8.7 per cent.

The report comes after the company announced a 64 per cent slump in pre-tax profits to £176m, which was down from £488.8m the year before.

One of the largest hits to the firm was a £400m cost for restructuring the retailer.

"We have made some hard decisions," M&S chairman Robert Swannell wrote in the report.

"However, these changes needed to be made for the long-term health of the business. Decisive action and strong execution have never been more important to compete in a fast-changing retail environment."

In particular, M&S has decided to focus more on its food offer, and it has been trying to stop a "damaging cycle of promotions and discounts" in its clothing business.

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