Marks & Spencer to pay additional 7.5 mn pounds to new CEO

British retailer Marks & Spencer Group will pay 7.5 million pounds to its new CEO Marc Bolland, to compensate benefits forfeited with his former employer.

Bolland would be joining the company on May 1.

He has been released six months earlier from his 12-month contractual agreement with earlier employer Wm Morrison Supermarkets.

Marks & Spencer (M&S) said that the company would compensate Bolland in lieu of a number of awards forfeited by his departure from Morrisons.

"This comprises 1.6 million pounds in cash and one million pounds worth of shares to compensate for loss of bonus and shares that would have vested in 2010," the retailer said in a statement on Monday.

In addition, he would receive a restricted share award to the tune of 1 million pounds and a performance share plan worth 3.9 million pounds to compensate for shares that would have vested in 2011 and 2012.

Meanwhile, Bolland would be paid a salary of 975,000 pounds.

The statement noted that his annual bonus potential would be up to 250 per cent of salary, apart from an annual award of shares under the company's performance share plan.

"In 2010/11, this will be an exceptional award worth 400 per cent of salary," M&S said.