Marks & Spencer Chairman Defends Senior Exec, CEO Pay Policy

14th Jul 2010 15:30

By Simon Zekaria Of DOW JONES NEWSWIRES LONDON (Dow Jones)--Marks & Spencer Group PLC (MKS.LN) Chairman Stuart Rose Wednesday defended the retailer's senior executive remuneration policy and the pay awarded to Chief Executive Marc Bolland at the company's annual shareholders meeting. "We pay bonuses based on independently set targets," Rose said, presiding over his last investor meeting at the company. Bolland, who joined the clothing, food and homeware retailer from U.K. grocer William Morrison Supermakets PLC (MRW.LN) three months ago, is to receive a pay package worth up to GBP15 million in his first year at the helm of the company. This package includes a basic salary of GBP975,000, an annual bonus up to 250% of salary, an exceptional award worth 400% of salary and GBP7.5 million to compensate for his early exit from Morrisons. Rose, who will leave the group by March next year, also said that although the retailer is trading in "challenging times," there are signs that "consumer confidence is beginning to improve." On leaving the group and receiving a sustained round of applause, Rose said, "My time has come to an end, but I know you will be in good hands." Earlier this month, Marks & Spencer said it made a good start to the year after reporting a 3.6% rise in first-quarter sales, but that it remains cautious about the outlook in the face of macroeconomic headwinds. -By Simon Zekaria, Dow Jones Newswires; +44 207 842-9410; [email protected] (END) Dow Jones Newswires July 14, 2010 10:30 ET (14:30 GMT)