Marks and Spencer has axed bonuses for senior management and reduced them for other staff this year despite making profits of more than £1bn.
The retailer has axed all bonuses for top management staff, meaning chief executive Sir Stuart Rose will be missing out on his cash reward, which was £2.6 million last year. Although bonuses have been kept for store teams they will only receive almost £13 million, which is about half the amount awarded last year.The reason behind the cuts is that the retailer failed to meet internal bonus targets set in April 2007.
Sir Stuart Rose, chief executive of Marks and Spencer, said: “Despite tougher economic conditions in the second half, M&S had a good year. Profit before tax was over £1bn with earnings per share up 8%. We have returned £914m to shareholders through the buy-back of 7.4% of our shares and a 23% increase in our dividend.
“The company did not meet its internal bonus targets set in April 2007 and consequently will not be paying a bonus. However, we will be paying £12.8m to store teams recognising their hard work in delivering a great service and dealing with significantly increased volumes.”