Marks and Spencer’s chief financial officer Alan Stewart is to leave the High Street retailer to join supermarket giant Tesco.
Mr Stewart’s basic remuneration will jump from £579,000 at M&S to £750,000 at Tesco.
The announcement comes in the week M&S reported its 12th consecutive drop in quarterly sales of general merchandise.
Mr Stewart will work out a six-month notice period.
On his appointment to Tesco, he will receive share awards worth £1.737m, to make up for deferred share awards from M&S that he will forfeit.
Mr Stewart will join the board of Tesco and is also due to join the board of drinks giant Diageo as a non-executive director in September.
Tesco chief executive Philip Clarke said: “When we set out on this search we wanted a candidate who had the right blend of experience, leadership and values to play a leading role in the transformation of Tesco. We have found all three in Alan.”
Before joining M&S, Mr Stewart worked at companies including HSBC and WH Smith.
Both M&S and Tesco have faced retail challenges for a number of years.
M&S chief Mark Bolland said sales in clothing and homewares were “not good enough”