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58
MARKS AND SPENCER GROUP PLC
DIRECTORS’ REPORT: GOVERNANCE
Director Year
Salary
£000
Benefi ts3
£000
Total
Bonus4
£000
Total PSP
vested5
£000
Pension
benefi ts6
£000
Total
£000
Marc Bolland 2015/16 975 21 622 128 293 2,039
2014/15 975 19 596 212 293 2,095
Patrick Bousquet-Chavanne 2015/16 541 38 366 50 135 1,130
2014/15 525 36 222 60 131 974
John Dixon12015/16 177 7 0 0 44 228
2014/15 600 25 217 122 150 1,114
Steve Rowe 2015/16 549 34 230 69 137 1,019
2014/15 525 42 653 66 131 1,417
Laura Wade-Gery22015/16 383 18 207 72 141 821
2014/15 552 21 219 118 138 1,048
Helen Weir 2015/16 590 208 620 0 148 1,566
2014/15 ––––––
1. The amounts shown for 2015/16 refl ect that John Dixon resigned from the Board on 16 July 2015.
2. The amounts shown for 2015/16 for Laura Wade-Gery take into account the period of maternity leave taken from 22 August 2015, calculated in line with the Company’s relevant policies.
3. Benefi ts include the value of car allowance and intrinsic value of SAYE in addition to the taxable value of car, driver and life assurance, as applicable to each director and as described
on page 59. As disclosed in last year’s report, for Helen Weir, benefi ts also include £188,500, the di erential value in contractual pension she forfeited to join M&S. This was paid in
12 eq ua l inst alme nts.
4. Half of any award will be deferred into Company shares for a period of three years. Further details of the 2015/16 Annual Bonus Scheme are shown on page 60.
5. The value of awards vesting in 2014/15 has been restated to refl ect the actual value of dividend equivalents and share price at the time of vesting. The value of awards vesting in 2015/16
has been estimated based on the three-month average share price from 4 January 2016 – 1 April 2016 as these awards do not vest until after the end of the fi nancial year. This value also
includes the anticipated value of dividend equivalents which will be payable in July 2016. These estimated fi gures will be restated in next year’s report.
6. Pension benefi ts comprise the value of cash provided in lieu of participation in an M&S pension scheme.
GOVERNANCE
REMUNERATION REPORT
The Remuneration Committee annually
reviews the senior remuneration
framework and considers whether the
existing incentive arrangements remain
appropriately challenging in the context
of the business strategy, current external
guidelines and a range of internal factors
including the Remuneration Policy and pay
arrangements throughout the rest of the
organisation. The table below shows the
performance measures used in current
incentive schemes and how these align with
the key performance indicators detailed on
pages 18 to 21. As shown, there is a strong
linkage between the key performance
indicators which are integrated in to the
directors’ incentive schemes. This ensures
that directors are clearly aligned and
motivated to deliver the strategy.
FIGURE 8: STRATEGIC ALIGNMENT OF PAY See KPIs on p18-21
EXECUTIVE DIRECTORS’ REMUNERATION
FIGURE 9: TOTAL SINGLE FIGURE REMUNERATION (audited)
FINANCIAL OBJECTIVES KPI INCENTIVE SCHEME
Grow Group revenue Group Revenue PSP
Increase earnings and returns Underlying Group Profi t Before Tax (PBT)
Return on Capital Employed (ROCE)
Underlying Earnings per Share (EPS)
Annual Bonus Scheme
PSP
PSP
Strong cash generation Free cash fl ow Annual Bonus Scheme & PSP
NON-FINANCIAL OBJECTIVES KPI INCENTIVE SCHEME
Foster a skilled, motivated and engaged team M&S Values Annual Bonus Scheme
Source products with integrity Plan A Annual Bonus Scheme
E cient and responsible operations Plan A Annual Bonus Scheme
LONG TERM STRATEGIC OBJECTIVES KPI INCENTIVE SCHEME
Driving growth Sales revenue Annual Bonus Scheme & PSP
Reaching customers Sales growth and online visits Annual Bonus Scheme
Improving profi tability Gross margin/operating profi t Annual Bonus Scheme & PSP