M&S Chief Executive Steve Rowe will still take his full £810,000 salary plus bonuses despite taxpayers picking up the tab for retailer’s furloughed staff
The boss of Marks & Spencer is not taking a pay cut despite furloughing staff and cancelling its £210million final dividend.
Chief executive Steve Rowe will still take his full £810,000 salary plus bonuses this year despite asking long-suffering savers and the taxpayer to prop up the ailing business.
Last year he received a pay packet of £1.6million, which included £203,000 of pension payments and a £621,000 bonus.
M&S chief exec Steve Rowe will still take his full £810,000 salary plus bonuses this year despite asking long-suffering savers and the taxpayer to prop up the ailing business
M&S has benefited from the business rates holiday to the tune of £180million but has refused to say how many staff it has furloughed.
Dozens of other business leaders, including the bosses of M&S rivals John Lewis, Topshop and Primark, have taken salary cuts after asking the taxpayer to cover part of their wage bills.
The Investment Association trade body said firms that cut dividends and receive government support to help them should cut top pay or risk ‘significant reputational ramifications’.
The dividend decision is another blow for the firm’s 300,000 private investors, who have seen the value of their investments plunge by half since the virus struck.
M&S has benefited from the business rates holiday to the tune of £180million but has refused to say how many staff it has furloughed
They were also hit by a 40 per cent cut to the interim dividend last year amid falling profits.
The FTSE 250 firm warned the virus was having a ‘severe’ impact.
Its department stores are shut and the food business is failing to capitalise on rising demand.
The shares rose 3.3 per cent to 97.46p as it confirmed it is eligible for the Bank of England’s support scheme, despite its bonds being downgraded to junk.
M&S also said debt covenants had been relaxed on a £1.1billion loan until autumn 2021.
It added it was working on a ‘never the same again’ overhaul to get ready for life after the lockdown.
Pay has been frozen across the organisation, but it declined to comment further on executive pay.