M&S boss faces pay package hit amid cyber attack
Analysts have forecasted that M&S may have lost revenues to date totalling more than £75m and could climb to about £125m if online operations are not restarted by the end of the month
Marks and Spencer boss Stuart Machin’s pay is reportedly expected to be cut by up to £1.06m after a cyber attack caused the company’s shares to drop by 14%, according to the Financial Times.
The hacking incident on 22 April 2025 could cost Machin about £831,000 on a performance share plan and £233,000 on a deferred bonus awarded in 2022, the year he was appointed chief executive.
Meanwhile, the price drop could slash the awards to £5.06m and £1.42m respectively, as of closing of trading in London on Friday
Machin is also facing paper losses of around £1.4m from his remaining shares held through long-term incentive plans and deferred bonuses, bringing his total potential loss to approximately £2.4m.
The FT said it has learnt that his pay for the year to 31 March might not be affected however, as the cyber attack happened after the company’s financial year ended and the retailer is expected to post strong results.
Yet, two senior remuneration officers claimed that the board could cut bonuses in light of the cyber attack, adding that this year’s bonus and long-term outcomes will probably “take a hit after” a challenging quarter.
A person close to the executive told the FT that he is “not driven by his pay package and his focus was to revive the retailer’s fortunes”, despite his planned turnaround being threatened by the recent chaos.
The cyber attack, believed to have compromised both customer and employee data, has left M&S unable to process online orders for more than three weeks, causing severe revenue losses.
Analysts have forecasted that M&S may have lost revenues to date totalling more than £75m and could climb to about £125m if online operations are not restarted by the end of the month.
M&S may claim up to £100m in losses from its cyber insurance, the Financial Times reported this week, offering some relief—though analysts warn it is unlikely to fully offset the damage.
The FT stated that the company is set to release its full year results on Wednesday and is expected to provide an update on the cyber attack.
