Marks & Spencer Group (LON:MKS) has decided to scrap annual bonuses to directors, the blue-chip retailer has disclosed. The decision came after the company saw its full-year profits slump, and narrowly avoided a demotion from the benchmark FTSE 100 index.
Marks & Spencer’s share price has fallen into the red in London in today’s session, having given up 0.73 percent to 287.10p as of 10:46 BST. The decline is largely in line with the broader UK market, with the Footsie currently standing 0.81 percent lower at 7,642.36 points. The retailer’s shares have lost more than 21 percent of their value over the past year, as compared with about a 2.6-percent rise in the benchmark index.
M&S scraps director bonuses
Marks & Spencer announced in its annual report published yesterday that no bonus payments will be paid to directors in relation to 2017/18 performance. The retailer explained that with the profit before tax performance meaning that no bonuses would be paid elsewhere in the organisation, the remuneration committee had decided “that it would not be appropriate to pay any director a bonus under these circumstances”.
Steve Rowe takes £1.1m home
The blue-chip retailer also disclosed that its chief executive Steve Rowe’s pay package for the year was £1.1 million. While he received no bonus for the year, the Guardian noted in its coverage of the news that Rowe will still be handed shares worth £2 million next month under the company’s long-term share bonus scheme.
Marks & Spencer posted its full-year results last month, revealing that its profit before tax had slumped 62.1 percent to £66.8 million in the 52 weeks ended March 31.
The blue-chip retailer is scheduled to hold its annual general meeting on July 10.