MARKS & Spencer's chairman and chief executive Luc Vandevelde has waived his £816,000 bonus entitlement this year.

A meeting of M&S' remuneration committee accepted the decision and said the move was a "very significant gesture".

Mr Vandevelde, who receives an annual salary of £650,000, had come under pressure to turn down the bonus payment amid plunging sales at the high-street chain.

A spokeswoman for M&S said Mr Vandevelde had been thinking about making the decision "for some time" and had not simply reacted to recent negative press coverage.

She added he had asked for the remuneration committee meeting to be brought forward so the decision could be rubber-stamped as quickly as possible.

Mr Vandevelde was due to be paid an initial bonus of £704,000 this year, half in cash and half in shares. He would have got a further £112,000 if he kept the shares for five years.

Dame Stella Rimington, chairman of the remuneration committee, said Mr Vandevelde had met all the performance and strategical targets set by the retailer during the past year.

She said he had no obligation to give up the bonus and had "demonstrated real leadership" in doing so.

Mr Vandevelde has also reduced his notice period entitlement from twelve to nine months, which M&S said underlined his confidence in the future prospects of the company.

Dame Stella said the committee was "more convinced than ever" that M&S had chosen the right man for the job of reviving its fortunes.

The committee has decided to increase Mr Vandevelde's bonus by £352,000 next year if he meets performance targets which have yet to be set.

He is also set to receive £352,000 in shares next May.

Mr Vandevelde took over at M&S last February after leaving French retailer Promodes.

Earlier this month, unions described his possible bonus as a "slap in the face" for M&S workers.

M&S recently announced plans to cut nearly 4,000 staff after deciding to pull out of its overseas operations and concentrate on the British market.

Staff from M&S stores in France and Belgium, Mr Vandevelde's home country, are due to descend on the retailer's head office next month in protest at the move.

The GMB union, which represents textile workers throughout the UK, has been a vociferous opponent of M&S' policy to switch to overseas suppliers, claiming the move has led to huge job losses in the UK's clothing industry.

John Edmonds, the union's general secretary, said: "It is only right that Luc Vandevelde does not receive a bonus.

"He has presided over the sacking of thousands of textile workers in the UK, the closure of M&S shops throughout Europe, and is still failing to listen to his customers - who are calling for quality British-made goods."

M&S reports its annual results on May 22. Pre-tax profit is expected to rise to just £430m compared with £418m the year before because of poor clothing sales.

Four years ago, M&S raked in £1.1bn in profit.