Marks & Spencer has started consulting shareholders over a new pay structure which could see executive remuneration linked more closely to performance, according to reports.
Marks & Spencer said in its annual report that it planned to review its pay strategy following the arrival of new chief executive Marc Bolland.
The talks were described by one significant shareholder as “constructive” but could prove controversial.
People close to the situation told the Financial Times that the overhaul was unlikely to lead to considerably higher pay for senior directors, as it is already able to award exceptional bonuses of up to four times a director’s salary.
They also said it would apply to future bonuses rather than those that had already been agreed, including Bolland’s pay package which could be worth up to £15m in the first two years.