Marks and Spencer 2002 Annual Report Download - page 18

Remuneration report
1 Directors’ emoluments Profit Total Total
Salary share8Benefits9Bonus10 2002 2001
£000 £000 £000 £000 £000 £000
Chairman and Chief Executive
Luc Vandevelde1654 16 206 1,358 2,234 834
Executive directors (appointed from)
Roger Holmes2(1 January 2001) 431 n/a 52 431 914 796
Alan McWalter 300 8 43 300 651 330
David Norgrove (18 September 2000) 272 7 19 272 570 143
Laurel Powers-Freeling3(6 November 2001) 114 n/a 119 100 333 n/a
Alison Reed4(11 July 2001) 239 6 20 239 504 n/a
Non-executive directors (appointed from)
Brian Baldock534 n/a – n/a 34 81
Tony Ball (1 September 2000) 34 n/a – n/a 34 20
Jack Keenan6(1 September 2001) 20 n/a – n/a 20 n/a
Kevin Lomax (1 September 2000) 34 n/a – n/a 34 20
Dame Stella Rimington 50 n/a – n/a 50 50
Retired directors (retirement date)
Robert Colvill7(31 December 2001) 289 7 104 173 573 415
Sir Michael Perry (11 July 2001) 11 n/a – n/a 11 34
Sir Ralph Robins (11 July 2001) 11 n/a – n/a 11 34
Sir David Sieff (11 July 2001) 11 n/a 3 n/a 14 39
Former directors n/a n/a n/a n/a n/a 1,202
Total 2,504 44 566 2,873 5,987 3,998
1Luc Vandevelde was the highest paid director both this year and last. His annual salary was increased from £650,000 to £700,000 with
effect from 1 March 2002.
2With effect from 1 January 2002, Roger Holmes’ annual salary was increased from £425,000 to £450,000. His emoluments for 2001
include compensation for loss of earnings from his previous employer of £654,000, awarded on his recruitment.
3Laurel Powers-Freeling was appointed to the Board on 6 November 2001 on an annual salary of £320,000. In compensation for loss of
future earnings from her previous employer she has received: a payment of £100,000 (included under benefits) and a further £100,000
(included under bonus). (See section 2 – Recruitment of executive directors.)
4Alison Reed was appointed to the Board on 11 July 2001 on an annual salary of £330,000.
5Brian Baldock relinquished the role of non-executive Chairman on 28 February 2000 but continued to assist the Chairman in the
transition period to the AGM in July 2000 after which his annual fee was reduced to £34,000.
6Jack Keenan was appointed as a non-executive director on an annual fee of £34,000.
7Robert Colvill retired from the Board on 31 December 2001 but remained as a full-time employee until 31 March 2002 to oversee the
transactional elements of the business restructure as well as continuing to manage Financial Services whilst succession was secured.
His annual cash bonus was therefore set against transaction targets relating to the business restructure. The Committee decided that
as he agreed to remain with the Company beyond his normal retirement date, a compensatory payment should be made of 15% of
his salary for the period from 1 July 2000 to 31 March 2002 for the self-funding of his pension arrangements (included under benefits).
(Emoluments for the 3 months to 31 March 2002 are shown under section 5 – Former Directors.)
8In line with all other employees, executive directors are allocated profit sharing based on a percentage of their earnings following the
qualifying period. Further information on profit sharing is given in note 11c of the financial statements.
9Benefits include the provision of cars, fuel and travel. Included in the benefits for Luc Vandevelde is a supplement of 16% of base salary
to compensate for the fact that he is not a member of the Company Pension Scheme. In addition, under the terms of his service
contract, the Company provides accommodation in London on which he is assessed for tax. A payment is also made to Roger Holmes,
Alan McWalter and Laurel Powers-Freeling in respect of pension in the form of a supplement of 10% of the difference between the
pension earnings cap and their base salary (see section 4 – Pensions). Laurel Powers-Freeling is also provided with accommodation
in Chester, to accommodate her working pattern (two days in London, three days in Chester – the location of our Financial Services
operation). A taxable benefit arises which is met by the Company.
10This year’s annual bonus for executive directors has been awarded at a level of 100% of base salary as financial targets have been
significantly exceeded. An explanation of the bonus awarded to Luc Vandevelde is given on page 15. No bonus was awarded last year.
(See footnote 3 above in relation to Laurel Powers-Freeling and footnote 7 in relation to Robert Colvill.)
11Paul Myners was appointed as a non-executive director on 2 April 2002 on an annual fee of £34,000.
16 Marks and Spencer Group p.l.c.