Top Executives Feel Pandemic’s Effect on Compensation
- Marks and Spencer lowers share payout for top executives due to Covid-19 pandemic
- CEO Steve Rowe and Finance Director Eoin Tonge affected by the change
- Payout reduced from 250% to 175% of salary
- Performance Share Plan (PSP) awards adjusted considering shareholder experience
- Average share price used as reference point from February 2020 to mid-May
- Clothing and home revenue declined 8.3%, grocery sales improved 1.9%
- Total annual revenues fell 1.9% to £10.18bn in full-year period
Marks and Spencer has reduced the share awards for its top executives, including CEO Steve Rowe and Finance Director Eoin Tonge, due to the ongoing Covid-19 pandemic. The payout has been lowered from 250% to 175% of their salary as a response to the retailer’s struggling performance. The company’s Performance Share Plan (PSP) awards have been adjusted to account for the significant impact on share prices since they were set in 2019. The average share price from February 2020 until mid-May was used as a reference point during discussions. M&S plans to set new performance targets when the Covid-19 impact can be better forecasted and review strategic measures for post-pandemic trading. In the full-year period ended March 2020, profit before tax dropped 20.2% to £67.2m, with grocery sales increasing 1.9%, but clothing and home revenue declining 8.3%. Like-for-like revenue fell 6.2% in the period, including a 2.2% impact from Covid-19 in March.
Factuality Level: 7
Factuality Justification: The article provides accurate and objective information about Marks and Spencer’s decision to lower share payout for its top executives due to the Covid-19 pandemic’s impact on their business. It also includes relevant financial data such as profit before tax, grocery sales, clothing and home revenue, and total annual revenues. However, it could be more concise in some parts and might not be necessary to include all the details about the retailer’s performance before the pandemic.
Noise Level: 3
Noise Justification: The article provides relevant information about Marks and Spencer’s decision to lower share payout for its top executives due to the Covid-19 pandemic impact on their business. It also includes some financial data about the company’s performance during the pandemic. However, it lacks in-depth analysis or exploration of broader implications and does not offer significant actionable insights.
Financial Relevance: Yes
Financial Markets Impacted: Marks and Spencer’s shareholders, Marks and Spencer’s executives
Financial Rating Justification: The article discusses changes to executive payouts at Marks and Spencer due to the COVID-19 pandemic impacting their business performance, which affects both the company’s internal management and its shareholders.
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 article.
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