BBC Friday, 27 April, 2001, 11:02 GMT 12:02 UK

M&S boss waives bonus

Marks & Spencer, the struggling retail chain, has said that chairman and chief executive Luc Vandevelde is waiving his rights to a £816,000 bonus.

The move follows criticism from shareholders of the Belgian boss who has failed to stem falling sales or reverse a share price slump.

Mr Vandevelde has also shortened the amount of notice he is due, from 12 months to nine months.

"Luc Vandevelde has demonstrated real leadership. He had no obligation to give up his bonus and has made a very significant gesture," said Stella Rimington, the former MI5 boss now chairman of M&S's remuneration committee.

"In so doing, he has shown his confidence in the future of the company and his commitment to leading its recovery.

"We are more convinced than ever that we chose the right man for the job."

Growing pressure

Mr Vandevelde has been under growing pressure to forego his bonus since the company admitted that clothing and footwear sales were continuing to decline this year.

The company's reaction was to close its continental European stores and cut more than 4,000 jobs.

Mr Vandevelde has said his strategy now focuses on returning the core UK operations to financial health.

Opposition to his bonus for this year centred on the fact that payment was due if Mr Vandevelde had merely put in place a strategy for reviving M&S's fortunes - rather than implemented one and seen it succeed.

Bigger bonus next time?

Key shareholders and M&S executives - whose bonuses were more closely linked to financial performance - revolted.

In return for Mr Vandevelde's gesture, M&S said it was increasing his bonus potential for the financial year 2001-02 by £352,000.

"The bonus will be dependent upon achieving the same financial performance targets as those of other management," M&S said.

At 1058 GMT, M&S shares stood at 273.75 pence, down two pence on the day.

This compared with a high of 664.5p touched in October 1997.

-- Anonymous, April 27, 2001