Marks and Spencer will not pay a bonus to its directors this financial year, because the retailer’s results were not good enough to trigger a payout.
The majority of directors’ bonuses — 70 per cent — is calculated against group profit before tax, with up to 30 per cent against individual performance.
In May, M&S reported pre-tax profits that were down 62 per cent to £67m, or £581m before exceptional items.
In its annual report released on Thursday the company said that this level of profit would be insufficient for bonuses to be paid elsewhere in the organisation.
“As such, it was decided that the [remuneration] Committee would exercise its discretion such that there would not be any bonus payment to any directors as a result of this overall level of business performance, irrespective of any performance against individual objectives.”
Of Marks and Spencer’s three directors named in this section of the report, only CEO Steve Rowe remains at the company. Finance director Helen Weir left the on 31 March and Patrick Bousquet-Chavanne, who was in charge of the international business, left on 31 May.
Shares, which had fallen 1.5 per cent in early trading, have recovered slightly to 290.80p, 0.58 per cent down.
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