Pressure from Marks & Spencer’s investors has forced the retailer’s executive chairman Sir Stuart Rose to agree to a 25 per cent pay cut for his final months in post.
Rose’s salary will be cut from £1.16 million to £875,000 and he will lead the search for a new, independent, non-executive chairman before finally leaving M&S in March 2011.
The pay cut comes after reports of discontent among major shareholders who have been continually disgruntled over Rose's current role - which combines the posts of chief executive and chairman and is against best practice guidelines.
M&S is bringing in former Morrisons boss Marc Bolland as chief executive in May, although Sir Stuart will remain in his current executive chairman role for three months while Bolland settles in.
Bolland’s move has already put M&S’s boardroom pay under the spotlight this year, with a total of £15m package offered to Bolland, which includes compensation for share options sacrificed at Morrisons.
Despite the concession to investors on pay, the retailer is effectively paying the salary of two chief executive roles until March next year.
Deputy chairman David Michels 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."
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