Lord Burns is entitled to pocket the cash under the terms of his contract with the retailer. Sir Stuart Rose is also in line for a small pay rise after his elevation to executive chairman. These payments are expected to further rile institutional shareholders already angered by not being consulted in advance of the controversial boardroom moves, formally announced to the stock exchange last Monday.

M&S is defying corporate-governance rules by giving Rose a combined chairman and chief executive role. The reshuffle has been criticised by Legal & General, the second-biggest shareholder in M&S, the Association of British Insurers, and Pirc, the corporate governance watchdog, for flouting the rules on good corporate governance. It is unclear whether Rose will accept any proposed pay rise. Last week he would say only that the remuneration committee had not met and nothing had been decided. But Lord Burns told The Sunday Times that he would expect a “small adjustment” to be made to Rose's base salary. This would have a knock-on effect on his bonus payments, which are typically a multiple of base salary.