Marc Bolland's move from Morrisons to Marks & Spencer worth £15m
Marc Bolland will embark on a wide-ranging review of Marks & Spencer's business when he walks through the door with a lucrative £15m transfer package on May 1.
The quiet and thoughtful Dutchman, who has negotiated a release date from his contract as chief executive of Morrisons, won't want to rock the boat initially - not least because chairman Sir Stuart Rose will be in place.
However, his mammoth share and salary package, which could result in him earning as much as £36.25m over the next five years, means investors will want to see decisive action to revitalise the business. Its under-performing food division needs particular attention.
Action needed: Marc Bolland is seen as a good choice although investors will want to see results
As occurred when Bolland joined the Bradford-based grocer, he will spend several months talking to staff and methodically reviewing M&S from top to bottom.
Rose, who has said he will quit as chairman by July 2011, is expected to leave earlier than this to make way for Bolland's changes.
In the meantime, M&S needs to convince investors that Bolland's enormous pay package was necessary.
He is widely seen as an excellent choice for the M&S job, having implemented a strong turnaround at Morrisons, however the size of his award has raised eyebrows.
One investor source said: 'We would understand him [Bolland] being compensated for forgoing share awards that are just about to vest, but he is also being compensated for some which don't pay out for years, which seems a little bit excessive.'
M&S said: 'We believe it is fair and reasonable compensation for a man of his experience.
'Part of it is to compensate him for what he is giving up and the rest is to incentivise him.' However, the retailer admitted that it did not consult with its investors in advance of negotiating the deal for Bolland.
Bolland can earn up to £36.25m over the next five years
It said: 'We didn't consult [with investor bodies]. We do not have to. The remuneration committee is voted on at the AGM.
'The structure of this package is in line with our other executive directors'.
Bolland will earn an annual base salary of £975,000, but has the potential to earn a further annual bonus worth up to 250pc of salary. He also gets an award of performance shares which vest after three years if targets are met - the equivalent to 400pc of salary for this year and up to 200pc in following years.
Additionally, he gets a further £7.5m in cash and shares in compensation for forfeiting awards at Morrisons.
He can access £2.6m of this immediately and the remainder over the next couple of years.
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