M&S staff may share £60m bonus

Marks and Spencer staff may share a 60m pound bonus pot, it has been reported

Staff at high street chain Marks & Spencer are on track to share a £60 million bonus pot following an improved performance by the group, it has been reported.

The group is expected to confirm this week that it has beaten internal performance targets, upon which the bonus is based, during the first half of its financial year, leading to £30 million being set aside.

If its profits for the full year hit the £575 million to £600 million range that analysts have predicted, the bonus pot will be increased to between £50 million and £60 million.

A bonus pool of this size would lead to the group's 70,000 permanent store staff receiving an average payout of £850 each.

It would be the highest bonus for years, and comes after staff failed to qualify for any payout last year, while they received a maximum of only £250 a year earlier.

The group reported a 40% drop in full year profits last year, but its recent trading performance has been the best for two years in a sign that its fortunes may be changing.

M&S reported a smaller-than-expected 0.5% decline in like-for-like sales for the 13 weeks to September 26 - a marked improvement on the 1.4% fall in the first quarter.

Analysts are expecting interim pre-tax profits to remain down on a year earlier, at £285 million against £297.8 million, when the group reports on Wednesday.

But the 4% fall would be far better than the declines seen at the full year stage.

However, a strong performance by the group during the key Christmas period will be crucial if staff are to achieve the maximum possible bonus payout.