Marks & Spencer staff will see their annual bonuses slashed despite the retailer generating profits of more than £1 billion last year.

In its last financial year, M&S employees received a bonus equivalent to 10 per cent of their salary. However, when the retailer announces its full-year results tomorrow, that figure is expected to be more than halved to less than 4 per cent.

M&S chief executive Sir Stuart Rose will also miss out on his bonus, which last year stood at£1 million, as a tough retail climate has meant that the company has missed internal targets.

The bonus pot, which last year amounted to£91 million, is likely to dip below£25 million, which will mean that Marks & Spencer's directors will also miss out.

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