Marks and Spencer 2002 Annual Report Download - page 22

Remuneration report
6 Long-term benefits (continued)
1984 and 1987 Schemes
The last grants under these schemes were awarded in June 1997. The performance targets for the exercise of
options granted in 1996 and 1997 are:
•Earnings per share growth of at least inflation plus an average of 2% per annum.
Participants who hold options under the 1984 and 1987 Schemes will continue to be bound by their Maximum
Option Value (MOV) of four times earnings, and may only exercise options up to this value, after which any
outstanding options lapse. Following the introduction of the current Scheme the Remuneration Committee decided
that MOV will no longer increase with earnings.
At the discretion of the Remuneration Committee, directors can take their options for all schemes into retirement.
Options held under the 1984 and 1987 Schemes continue to be bound by MOV and can be exercised subject to the
option period. For options held under the 1997, and current Schemes, options lapse if they are not exercised within
12 months of retirement.
Directors’ long-term benefits
The options detailed in the table below may not be exercisable for any one of the following reasons:
(i) their value is in excess of the MOV;
(ii) the options have not been held for three years and therefore cannot be exercised under scheme rules; or
(iii) the options have not met the appropriate performance criteria.
During the year, David Norgrove exercised an Executive Share Option and an SAYE contract making a total gain of
£4,000. No other director exercised Executive Share Options or SAYE contracts in the year under review.
The market price of the shares at the end of the financial year was 385.25p; the highest and lowest share prices
during the financial year (for either Marks and Spencer p.l.c. or Marks and Spencer Group p.l.c.) were 395.5p and
235.3p respectively.
At 1 April Exercised/ At 30 March
2001 Granted lapsed 2002 Option Exercise
or date of during during or date of price price
appointment the year the year retirement (pence) (pence) Option period
Luc Vandevelde
Not exercisable 3,984,674 – – 4,365,532 261.01Mar 2003 – Jun 2011
Granted – 380,858 – 256.0 Jun 2004 – Jun 2011
Roger Holmes
Not exercisable 871,794 – – 1,302,958 228.01Dec 2003 – Dec 2011
Granted – 431,164 – 296.01Jun 2004 – Dec 2011
Alan McWalter
Not exercisable 721,310 – – 897,090 295.01Jan 2003 – Jun 2011
Granted – 175,780 – 256.0 Jun 2004 – Jun 2011
David Norgrove
Exercisable 80,480 – – 55,249 368.01May 1995 – Jun 2005
Not exercisable 402,819 – – 681,807 330.01May 1999 – Dec 2011
Granted – 278,988 – 296.01Jun 2004 – Dec 2011
Lapsed – – 5,940
Exercised – – 19,291 254.0 260.5
SAYE 11,085 – – 7,452 235.01Jan 2002 – Jun 2004
SAYE exercised – – 3,633 322.0 392.3
Laurel Powers-Freeling
Not exercisable – 365,713 – 365,713 350.0 Dec 2004 – Dec 2011
Alison Reed
Exercisable 85,053 – – 85,053 409.01May 1996 – Jun 2005
Not exercisable 424,961 – – 566,389 313.01May 1999 – Dec 2011
Granted – 141,428 – 350.0 Dec 2004 – Dec 2011
SAYE 10,166 – – 10,166 166.01Jan 2005 – Jun 2006
Retired directors
Robert Colvill2
Exercisable 211,158 – – 186,253 369.01May 1995 – May 2005
Not exercisable 114,504 – – 63,828 491.01May 1998 – May 2004
Lapsed – – 75,581
1Weighted average price.
2Options are carried into retirement under the terms of the various schemes (see above).
20 Marks and Spencer Group p.l.c.