Mark and Spencer’s boss Stuart Rose will take a 25% pay cut when he steps down as chief executive of the high-street giant in July.
The cut follows pressure from investors and means Rose will be paid £875,000 for his final months at M&S, rather than £1.16m.
But Rose will leave four months earlier than previously thought, as he will now step down as the company’s chairman in March next year, rather than July 2011.
Marc Bolland – formerly the head of Morrisons – will join as M&S chief in May, leaving a three-month overlap with Rose to ensure a smooth handover,
the Guardian reported.
David Michels, deputy chairman of M&S, said: “The board has set out this process to ensure a smooth transition over the coming months and enable Marc to draw on Stuart’s considerable experience.
“We are pleased to be moving into the final stage of our commitment to split the roles and appoint an independent chairman by March 2011.”
But it is thought Rose’s pay could still lead to a shareholder protest as Rose is set to earn 33% more than the chairman of the much larger Tesco, and nearly four times the chairman’s remuneration at rival fashion chain Next.
One investor told the paper: “We will certainly be voting against the M&S remuneration report this year. This [Rose’s pay] really is the final straw.”