LONDON (Reuters) – Marks & Spencer’s <MKS.L> directors will not receive a bonus this year after the clothing and food retailer reported a second straight fall in annual profit, it said on Thursday.
Last month M&S reported a 5.4 percent decline in underlying pretax profit for the 2017-18 year and said it had to modernise rapidly to survive.
M&S’s annual report showed no director was paid a bonus as profit was below the threshold to trigger the corporate element of the scheme, as well as bonus payments elsewhere at the retailer.
“As such, in the interests of fairness, the (Remuneration) Committee decided to exercise its discretion that no payment would be made to any director, irrespective of any achievements against each director’s individual objectives,” M&S said.
Chief Executive Steve Rowe received a total of 1.12 million pounds for 2017-18, down from 1.64 million pounds in 2016-17.
M&S said no salary increases have been awarded for the broader leadership team. For Rowe this means no pay rise since his appointment in April 2016.
The retailer, whose shares have fallen 21 percent over the last year, said overall director remuneration was down 33 percent.
The stock was down 1.5 percent at 288 pence at 1304 GMT, valuing the business at 4.68 billion pounds.
(Reporting by James Davey; Editing by Alexandra Hudson)