Unlock Editor’s Digest Lock for Free
Marks and Spencer CEO Stuart Machine received a total salary of over £7 million last year. This is bumper’s reward ahead of the expected decline in revenues following a catastrophic cyberattack on retailers in April.
According to the company’s annual report issued Monday, Machin, who has been leading M&S since 2022, received a jump of 39% of total wages to £7.1 million in the 12 months to end March. His package included £894,000 in base salary and pension benefits, £1.6 million in bonuses, and £4.6 million in stakes granted in title under a long-term performance-based equity plan.
The pay details featured in the report were disclosed on April 22, when customer data was compromised and M&S was unable to accept online orders for clothing and home-based goods, prompting a decline of 8% in the company’s stock price.
However, M&S said the Compensation Committee delayed setting targets for its 2025-26 long-term stock plan until after the year as a result of the violation.
The company was rolling last year when its shares rose nearly 40%. The group reported last month that pre-tax profits and adjustments rose 22% to £876 million in fiscal year 2024-25, exceeding analysts’ £838 million forecast.
The Stuart Machine package included £894,000 in base salary and pension benefits, a bonus of £1.6 million and £4.6 million shares entitled under Long-Term Performance-Based Stock Plan © via Reuters.
The latest assessment of the financial impact of cyber defense violations said it was a hit of up to £300 million this fiscal year.
The attack “stretched the management team’s strain. …The impact is important and can last for weeks or even months,” said Archie Norman, the company’s chairman.
But he said the disruption in recent weeks would not disrupt the plans for the machines for business, saying, “The cyber incident in 2019 would prove to be a road collision, even if it doesn’t feel that way today.”
M&S expects the chaos caused by the attacks to continue into July. The company says cybercriminals have been unable to access the system through third-party suppliers and use so-called social engineering tactics to violate the company’s own defenses.
Recommended
The spokesman said the machine’s compensation reflects growth under leadership over the past three years, with over 90% rising until March 31.
“Under Stuart’s leadership, sales, profits and market share have increased for three years,” the person said.
“We’ve been working hard to get the most out of our business,” said Clive Black, analyst at Shore Capital.
However, he added that the cyber attacks are “one-off and we believe (it) shows the leadership and culture of M&S at its best.”
