M&S chief pay rise after profits top £700m

Sales and Earnings Marks & Spencer is growing thanks to a restructuring plan piloted by Stuart Machin

Marks & Spencer chief executive Stuart Machin won a £2m pay rise after his turnaround efforts helped the retailer achieve its best financial position in almost 30 years.

Mr Machin's total pay jumped to 4.7 million pounds sterling last year, i.e. from £2.7m the year before, helped by a larger bonus and greater share awards during the year.

His salary rose by around 22% in the year to £818,000 compared from £669,000 a year earlier.< /p>

Katie Bickerstaff, the co-chief executive of M&S who steps down next month, also received a similar rise, with her salary rising from £2.4m to £4.4m.

The period follows a strong period of growth for the company. which last month said its profits rose 58% in its latest financial year to £716.4m. Revenue grew by 9.3% to exceed £13 billion.

Sales and profits are rising as a restructuring plan piloted by Mr Machin bears fruit after years of stalled turnaround efforts under previous management.

< p>Mr Machin, who became co-chief executive in May 2022 , oversaw the modernization of the company's apparel business and maintained strong performance in the food sector.

Last year, M&S increased sales not only in its food business, but also in the clothing sector, where growth has typically lagged. It now has a 10% share of the overall UK clothing and homeware market.

M&S ended its latest financial year with the equivalent of £46m in cash, compared with net debt of £356m in the year previously. Strong sales, profits and cash prompt one analyst to say M&S is «in its strongest financial position since 1997». 

The company's shares are up about 64% over the past year.

Mr Machin's total pay is the highest he has received since taking over as chief executive.

M&S said the increase came after the company exceeded its performance targets. The company's pay board said Mr Machin had also played a key role in improving the performance of the M&S and Ocado joint venture by «coaching the Ocado Retail CEO» during the period.

M&S said the majority of his package was deferred variable pay, which was dependent on holding periods and whose value is linked to future share price performance. The statement said Mr Machin had received a payout of £1.69m this year.

An M&S spokesman added: «M&S delivered a strong performance, attracting another million customers, growing sales, market share and profits, investing in the largest ever rewards payout for our store colleagues and paying shareholders a dividend for the first time in four years.»