Record Pay for M&S Boss Amidst Profit Growth and Cyber Attack Woes
- M&S CEO Stuart Machin received a £7.1m pay packet last year
- Pay increased from £5.1m the previous year
- Includes fixed pay of £843,000 and £1.63m in bonus payments
- 2% salary increase on 1 July
- M&S facing a significant pay reduction due to cyber attack
- Cyber attack led to a 14% drop in share price
- Retailer’s profit before tax and adjusting items up to £875.5m
- Sales rose 6% to £13.9bn, with food and fashion seeing growth
Marks & Spencer (M&S) CEO Stuart Machin received a staggering £7.1 million pay packet in the year to 29 March, according to the company’s annual report, up from £5.1 million the previous year. The increase came from a fixed salary of £843,000 and £1.63 million in bonus payments. Machin is set to receive a 2% salary hike from 1 July, which is lower than the 5% awarded to customer assistants. M&S is facing a potential pay cut of up to £1.1 million this year due to a cyber attack that has negatively impacted its operations and stock value. The cyber attack, disclosed on April 22, caused a 14% drop in the retailer’s share price, resulting in a loss of approximately £831,000 from Machin’s performance share plan and £233,000 from a deferred bonus, both set to pay out in July. The total potential hit to Machin’s compensation could reach up to £2.4 million as he also faces paper losses on shares held through long-term incentive plans. Despite this, M&S reported a profit before tax and adjusting items of £875.5 million for the year, an increase from £716.4 million. Sales rose by 6% to £13.9 billion, with food sales up 8.6% to £9 billion and fashion, home, and beauty seeing a 4.4% lift to £4.2 billion.
Factuality Level: 8
Factuality Justification: The article provides accurate and relevant information about Stuart Machin’s pay, his salary increase, the impact of the cyber attack on his compensation, and the company’s financial performance. It also includes relevant details about sales growth in different sectors. However, it could be more concise and avoids any personal opinions or bias.
Noise Level: 3
Noise Justification: The article provides relevant information on the CEO’s pay and its relation to the company’s performance, but it lacks in-depth analysis or exploration of broader implications.
Financial Relevance: Yes
Financial Markets Impacted: Yes
Financial Rating Justification: The article discusses the pay of M&S CEO Stuart Machin and how his compensation is affected by a cyber attack that impacted the company’s operations and stock value, leading to a drop in its share price. It also mentions the company’s profit before tax and adjusting items, which shows financial relevance and market impact.
Presence Of Extreme Event: No
Nature Of Extreme Event: No
Impact Rating Of The Extreme Event: No
Extreme Rating Justification: There is no extreme event mentioned in the text.
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