15 July 2010
Marks and Spencer maintain shareholder confidence over Bolland’s pay plan
Results from the vote at the annual general meeting show the board still have the backing of the majority of shareholders.
Wednesday’s vote by shareholders at Marks and Spencer’s annual general meeting shows them to have largely supported, new chief executive of M&S, Marc Bolland’s contentious £15 million pay package, subject to performance. The result, in which 83.8% of voting shareholders endorsed the pay plan, 7.9% opposed and 8.3% abstained, is a major communications coup for, executive shareholder, Sir Stuart Rose and Bolland, especially when compared to the 47% of Tesco Shareholders who earlier this month, abstained or voted against their boardroom’s pay policy.
The lack of revolt is in contrast to survey results published 10 days ago, by pay consultancy group MM&K, which show a 1% fall in earnings per share since 2008, and yet a 5% rise, at an average of £3.1m, in pay for CEOs’ of the UK’s top 100 listed companies over the same period.
83.8% of voting shareholders endorsed the pay plan, 7.9% opposed and 8.3% abstained
Impact of engagement
The decision by the majority of shareholders not to force a rethink, which was widely expected, implies a high level of engagement within the organization. Although board members are seeing greater returns than shareholders, loyalty and trust still seem present.
Nick Cosgrove, business reporter for the BBC, describes not only the commercial aspects of Wednesday’s AGM but also the fact that shareholders were greeted with a mini tub of clotted cream vanilla ice cream, followed by a “sumptuous buffet lunch with wine” and that Rose was joined later on stage by, 60s icon, Twiggy to demonstrate the most profitably products of the past year. Although at times controversial, Rose has been able to maintain the majority of shareholder engagement and confidence, allowing Bolland to declare “I am about evolution not revolution” without too much fear of the latter.
Have your say
What engagement tools is your organization using to motivate employees? Does your enagement strategy tie closely with the company's business objectives? What do you think are the next steps for the Marks and Spencer's internal communications team?
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