M&S Handed £600,000 Bonus To Ex-Boss Bolland

Marc Bolland, the former chief executive of Marks & Spencer (Other OTC: MAKSF - news) (M&S), was awarded a bonus of more than £600,000 last year, the high street retailer will disclose on Thursday.

Sky News understands that M&S will say that Mr Bolland received the payment - worth roughly one-third of the maximum bonus to which he was entitled - as part of a multimillion-pound package in his final year at the company.

Mr Bolland announced in January that he was stepping down in April to be replaced by Steve Rowe, an M&S 'lifer' who began his career in its Croydon store at the age of 15.

The bonus payment to the former chief will be slightly higher than last year's award of £596,000, according to people close to the company.

Under the terms of Mr Bolland's contract, he is entitled to a bonus of up to twice his £975,000 basic salary, with a large element of the award based on M&S's profitability.

The company announced last month underlying profits of £689.6m for the year to the start of April.

However, its pre-tax profits fell 18.5% to £488.8m after one-off costs of £200m, including £100m in charges relating to its struggling international business and a £50m insurance mis-selling bill related to M&S Bank.

Mr Rowe's brief will be to rebuild M&S's appeal among millions of clothing customers who complain that its products are frequently ill-fitting, unfashionable or unavailable.

Speaking last month on the day of the company's results, Mr Rowe said: "Mrs M&S is the average shopper in Marks And Spencer – obviously she’s female, just over 50, and she’s shopping with us around 18 times a year.

"She’s a working mum, maybe a grandmother, maybe just about to retire. You find Mrs M&S all over Britain.

"She (Munich: SOQ.MU - news) has a passion for great quality and great product, and she understands value – she’s very value savvy.”

M&S declined to comment.