Marks & Spencer boss Sir Stuart Rose saw his annual pay package shrink by nearly £1 million after the retail giant failed to hit annual performance targets, it was disclosed today.
The chain reported last month that its profits topped £1 billion for the first time in a decade, but Mr Rose received no extra cash bonus on top of his £1.13 million salary as earnings fell short of internal goals.
Details of his salary are outlined in the group's annual report, which shows that he earned £1.375 million in pay and benefits in the year to March 31st, compared with £2.3 million seen in the previous 12 months.
However, Mr Rose - who last week took on the dual role of chairman and chief executive in a controversial move - will next month pick up a shares-based bonus worth about £1.9 million, based on today's share price, under a three-year long-term incentive plan.
He is also due to be awarded further shares under the next three-year plan, details of which will be given by the beginning of July, according to M&S.
Mr Rose replaced Lord Burns as chairman on June 1st, effectively taking on both positions at the helm of the retailer - a decision that raised eyebrows amid corporate governance concerns. M&S made a number of concessions to appease angry shareholders and confirmed that Mr Rose would not receive a pay rise for taking on the new role.
The group also said that it had agreed with former chairman Lord Burns that his leaving package - £450,000 in salary paid monthly for a year - would be reduced if he took on a new position within the first 10 months.
And as well as hiring additional non-executive directors to the board, M&S also said it would allow investors to have their say on Mr Rose's promotion by putting him up for re-election at each annual general meeting - the first of which takes place next month.
In the annual report out today, M&S said it remained "strongly of the view that this was the only practical way to secure his extended term, and is the right decision for M&S".
Mr Rose has pledged to stay in charge of the retailer until July 2011.