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M&S Faces Major Setback after Cyber Attack; CEO’s Pay Hit Hard

Retail

Business Honor
19 May, 2025

A cyber-attack disrupts M&S operations, slashes CEO pay, and threatens future change plans.

Marks & Spencer (M&S) is dealing with a serious cyber-attack that has caused major problems for the company. The attack, which became public on April 22, has stopped online orders for over three weeks and caused issues with stock in stores.

Stuart Machin, the CEO of M&S, has suffered significant losses as a result of the 14% decline in the company's share price. He is expected to lose up to £2.4 million from his pay. This includes £831,000 from a performance share plan and £233,000 from a deferred bonus. On top of that, the value of shares he holds through long-term plans has also gone down.

The attack has hurt M&S’s online sales badly. Experts say the company may have already lost over £75 million in sales, and that number could go up to £125 million if the problems continue. The company is also spending more to fix the damage, including hiring outside experts. Even though M&S has cyber insurance and could claim up to £100 million, this may not cover all the losses.

Retail analysts warn that the attack might slow down M&S’s plans to improve its technology and online services. The success of the business in the future depends on these plans. Despite these problems, M&S is still expected to report strong profits for the year ending March 31 because the cyber-attack happened after the financial year closed. However, Machin’s future pay could face more cuts depending on how the company recovers.

M&S says it is working hard to fix the issues and that the CEO’s pay is linked to how well the company performs. But experts say the long-term damage to M&S’s business could be serious if problems are not solved quickly.