Department Stores

M&S boss to depart with £2.6m pay packet

M&S also confirmed that Rowe will be working beyond the end of the 2021/22 financial year and for up to 12 months as an adviser to the new leadership team

Marks and Spencer’s outgoing boss Steve Rowe more than doubled his pay last year from £1.07m to £2.63m after receiving a £1.6m bonus.

The bonus, his first since 2017, also comes as M&S rewarded its 4,500 store management and head office staff. Rowe stepped down from his role as chief executive at the end of May and will step away from the business in a full-time role after the firm’s AGM on July 5.

M&S also confirmed that Rowe will be working beyond the end of the 2021/22 financial year and for up to 12 months as an adviser to the new leadership team. It added he has “worked tirelessly and determinedly to deliver on the transformation promise” of the business.

As such M&S said it deemed it appropriate to award Rowe a bonus despite him being under notice at the date of payment.

Commenting in the firm’s annual update, M&S chairman Archie Norman said: “Marks and Spencer ends the 2022 financial year at an inflection point in its history. Not only have we emerged from the
pandemic a stronger business, but we are also at the end of the “fixing the basics” phase of our transformation. And we have a very dynamic new leadership team taking over from Steve Rowe, our longstanding chief executive.

“Their mandate is now to reshape M&S as a growth business capable of exploiting the power of our global brand. I want to be clear that on doing so we are not declaring victory. Whilst we can now see more than glimpses of the potential in both Clothing and Home and Food, there are many aspects of both main businesses that require improvement, but the strategy is now clear, and our results this year have exceeded most expectations.”

He added: “Steve Rowe, in his remarkable tenure as chief executive grasped many of the nettles and addressed the underlying drift of previous decades.The change in leadership is not likely to herald a change of direction but rather a significant acceleration and a bolder approach to investment and growth.”

The news comes after M&S recently revealed its full-year results for 52-week period ended 2 April 2022, where it confirmed profit before tax and adjusting items of £522.9m, surging from £403m the previous year.

On a statutory basis it returned to profitability with profits after tax of £309m, up from a loss of £201.2m the previous year.

Revenue for the period increased 6.9% to £10.8bn boosted by a 10% increase in food sales and a 3.8% increase in clothing and home.

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