Marks & Spencer is expected to offer salary of around £500,000 to its new chairman, which is nearly 40 percent less than the salary received by its present chairman, Sir Stuart Rose.

The retailer is in talks with Robert Swannell and is believed to have offered him a salary package of around £500,000.

The annual salary of Sir Stuart is £875,000, which has been controversial with shareholders.

M&S is expected to make official announcement of its new chairman in this week.

He will not assume the position of chairman until January but will join the board in October.

Mr. Rose is expected to resign from position in January.

Mr. Swannell is the former vice-chairman of Citigroup and has helped M&S in difficult times during hostile takeover attempt by Bhs-owner Sir Philip Green in 2004.

He also defended Safeway from number of rivals, advised Roman Abramovich on his takeover of Chelsea Football Club.

Besides remaining as chairman of HMV, the retailer that owns the music stores and Waterstones bookshops, he is non-executive director of private equity group 3i and the property company British Land.