Page last updated at 15:45 GMT, Tuesday, 9 March 2010

Marks and Spencer's Sir Stuart Rose expects pay cut

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Sir Stuart Rose on leaving M&S

Sir Stuart Rose, Marks and Spencer's chairman and chief executive, says he is ready to take a pay cut when he hands over part of his role.

The company will have a new chief executive in early May in the form of Marc Bolland, who is joining from the food retailer Morrisons.

Sir Stuart will spend a month handing his chief executive role over to him.

Asked by BBC's Working Lunch programme if he would then give up part of his salary, Sir Stuart said: "Sure I will."

He will then give up his chief executive role in mid-June but stay on in a part-time role as chairman.

No decisions yet

There had been reports that investors were pressing for Sir Stuart to reduce his current £1.13m salary in line with his reduced responsibility.

But he told the BBC no firm dates or decisions about a pay cut had been made.

"We haven't decided what that will be yet, but there will be some mitigation of my contract I'm sure - but we haven't discussed that yet," he said.

There will be some mitigation of my contract I'm sure - but we haven't discussed that yet
Sir Stuart Rose, chairman and chief executive, Marks and Spencer

Sir Stuart shocked investors in 2008, when, by adding the role of chairman to his existing post of chief executive, he breached the etiquette of rules that govern big business in the UK.

Meanwhile, his successor's pay package has also proved controversial - it could amount to as much as £15m over three years. His base salary is £975,000.

'Prised out'

But Sir Stuart defended Marc Bolland, saying: "I've had to defend him quite robustly and I'll continue to defend him robustly - Marc's been hired on a competitive salary."

He added: "It is a £10bn-£12bn international corporation, it is profitable and has almost 100,000 employees."

"We had to prise him out of Morrisons, for which we had to pay, if you like, a penalty, but he has to be incentivised," Sir Stuart said.

"If he delivers that incentive for himself the shareholders in Marks and Spencer will be very happy, because he has to make the business grow at a pretty substantial rate."

He added that Marc Bolland would "fit the bill perfectly".



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SEE ALSO
Bumper pay deal for new M&S boss
01 Feb 10 |  Business
Sir Stuart Rose's legacy at M&S
18 Nov 09 |  Business

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