Marks & Spencer slashes bonus targets

Marks and Spencer has slashed the target chief executive officer Stuart Rose and senior executives must reach to secure bonuses due to the worsening economic outlook.

In its annual report published yesterday, Marks and Spencer, which made £1 billion profit in the last financial year, said it was confident in its long-term growth prospects but warned short-term trading was at risk.

"The short-term economic outlook means that it is likely to be much more difficult to achieve such high growth rate in the next few years," Marks and Spencer said.

Mr Rose has repeatedly said he believes a slowdown in spending could go on until 2010.

Marks and Spencer, Britain's largest apparel retailer, said it had made the decision to cut the targets for directors' payouts after consultation with its 10 largest investors.

The retailer has been accused by some investors this year of flouting corporate governance best practice through its decision to appoint Mr Rose to the role of executive chairman and CEO.