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Marks & Spencer’s (M&S) chief executive’s total yearly pay package jumped to \u00a37m, before a cyber attack knocked-out online orders, hit contactless payments, and disrupted stocks in stores. <\/p>\n
Stuart Machin got the bump, from the previous year’s \u00a35m total, mainly due to share awards from reaching performance targets including profit growth.<\/p>\n
In this current year, however, a cyber attack on the retailer in April is expected to take a \u00a3300m bite out of profits.<\/p>\n
The retailer’s remuneration committee said it had considered the “recent cyber incident” when deciding on performance-related pay and concluded that “no adjustments were needed”.<\/p>\n<\/div>\n
But it said it “recognised it would need to re-visit the matter” when deciding on next year’s compensation.<\/p>\n
M&S expects insurance to cover some of the financial impact, but issues with its online services will continue into July.<\/p>\n
According to M&S’s annual report, Mr Machin got a small rise in his basic salary to \u00a3843,000 in the year to March. His bonus grew by \u00a3100,000 to \u00a31.6m. He also received a pension contribution.<\/p>\n
But the amount he gained from share awards rose from \u00a32.6m to \u00a34.5m.<\/p>\n
The attack took place over the Easter weekend and initially hit click-and-collect and contactless payments. Days later M&S put a banner on its website apologising that online ordering was not available.<\/p>\n
In M&S’s annual report, chairman Archie Norman said the impact of the attack was likely to “endure for some weeks, or even months”.<\/p>\n
However, he added: “I am confident that in a year’s time the cyber incident will prove to have been a bump in the road along the path to growth, even if it does not feel like that today.”<\/p>\n
Police are investigating a group of English-speaking hackers, known as Scattered Spider. The same group is believed to have been behind attacks on the Co-op and Harrods.<\/p>\n
Mr Machin was appointed M&S chief executive just under three years ago. Shortly after starting the top job, he revealed his “reshaping for growth” plans, which included \u00a3500m of “structural cost reductions”.<\/p>\n
As part of the business overhaul, the company said on Monday it is “accelerating” its “digital transformation plans” to “reinforce our cyber defences and provide greater resilience in the event of a subsequent attack”.<\/p>\n<\/div>\n