Marks & Spencer scraps executive bonuses due to coronavirus pandemic
High street retailer Marks & Spencer said it will scrap executive bonuses next year due to the coronavirus crisis.
The firm said today that there will be no bonus scheme in operation for executive directors in 2020/21.
M&S also said that the pay of chief executive Steve Rowe will be frozen, and there will be no salary increases across the rest of the business, due to last year’s performance and the impact of the coronavirus pandemic.
“Executive directors will still continue to be measured against a scorecard of individual objectives aligned to the strategic priorities set out earlier in this report, however no financial payment will be made in respect of their achievements,” the company said in its remuneration report today.
“The committee debated the appropriateness of this decision in a time when executives are working harder than ever and believes, in the context of wider macroeconomic factors and the experience of the business with a large number of colleagues placed on furlough, this is the right decision for M&S.”
No bonus was paid out under the Annual Bonus Scheme in 2019/20 due to the performance of the company, it said in its annual report today.
Rowe’s total pay was down about 20 per cent compared to the previous year due to lower PSP outcomes and the reduction in share price during the year. The chief executive was paid £1.21m, including £143,279 paid out under the PSP scheme.
Last month Marks & Spencer posted a 21.2 per cent drop in profit before tax from £84.2m the previous year to £67.2m for the year to 28 March.
That included a £52m hit from coronavirus and another £212.8m for costs and stock writedowns due to the pandemic.