Marks & Spencer (M&S) staff bonuses will be slashed this year, despite the retail giant making more than £1bn profit in 2007.
M&S’s 56,000 staff each received a bonus payout of 10% of their salary as a result of good profits in the 2006-07 financial year. However, when the retailer launches its full-year results tomorrow, the bonus figure is expected to more than halve to less than 4%.
The payout pot is likely to shrink from £91m to less than £25m, causing even chief executive Stuart Rose to miss out on his bonus, which last year came to £1m.
The economic downturn and tough retail climate has meant the company has struggled to meet internal targets.