Marks & Spencer’s chief executive Marc Bolland’s bonus is under threat as the retailer’s profits are expected to fall.
Bolland is likely to announce M&S’s first fall in full-year profit for three years next week, which will impact his rewards package, the Financial Times reported.
Bolland’s annual bonus is worth up to twice his salary and around 60% of it is linked to the retailer’s performance. He is still expected to take home around £6m.
Analysts expect M&S pre-tax profits to come in at £693m for the year to March 2012, down from £714.3m the previous year.
Bolland is expected to admit that his plan to add £3bn of sales by 2014 was too ambitious.
The former Morrisons chief executive was paid a basic salary of £975,000 in the year to March 2011, missing his maximum bonus.
Bolland, whose joining package of £15m will be paid over a number of years, could also receive up to £3.9m in shares under a plan based on the growth of earnings per share above the rate of inflation over the past three years.