Marks and Spencer 1998 Annual Report Download - page 42

1998 1997 1998 1997
£000 £000 £000 £000
Sir Richard Greenbur y 242 322 Mrs C E M Freeman 240 192
J K Oates 747 836 D K Hayes –124
P G McCracken 49 150 C Littmoden 9290
P L Salsbur y 30 104 B S Morris 68 32
Lord Stone of Blackheath 152 189 J T Rowe 66 133
R Aldridge 309 19 S J Sacher 201 Ð
J R Benfield 470 34 P P D Smith 188 122
N L Colne –252 D G Trangmar 172 672
R W C Colvill 375 181 The Hon David Sieff(3) 84 213
(1) The total gain made by the directors on the ex ercise of their share options was £3.4m (last year £3.9m).
(2) Details of options giving rise to these gains can be found on pages 42 to 44. The gains are calculated as at the date of ex ercise although the
shares may have been retained. (DirectorsÕ interests in shares are shown on page 44.)
(3) The Hon David Sieff, non-ex ecutive director, ex ercised share options in relation to grants made to him when he was an ex ecutive director.
All remaining options have now lapsed.
2 GAINS MADE ON DIRECTORS’ SHARE OPTIONS
3 DIRECTORS’ PENSION INFORMATION
(i) Pension Scheme
The ex ecutive directors, management and staff all participate in the CompanyÕs Pension Scheme. The Scheme is non-contributory, fully funded and
the subject of an Independent Trust. With effect from 1 January 1997, the normal retirement age under the Pension Scheme for all staff below age
60 (including ex ecutive directors) engaged on or before 31 December 1995, was changed from 60 to 65. A ccrued rights of these staff were not
affected by the change. For staff engaged on or after 1 Januar y 1996 the normal retirement age is 65.
The Pension Scheme enables members to achieve the maximum pension of two-thirds of their salary in the twelve months ending at normal retirement
age after 30 yearsÕ ser vice. For staff who joined the Scheme prior to 1 January 1996 no actuarial reduction is applied to pensions payable from the
age of 58. Staff who joined the Scheme on or after 1 Januar y 1996 are subject to an actuarial reduction in their pension if payment starts prior to
age 65.
In the case of earnings over £100,000 per annum, the pensionable salar y is based on an average of the earnings over the last three years to
retirement.
The pension of Mr J K Oates only is based on a uniform accrual of pension of two-thirds of final salary at the age of 60. This was a specific
undertaking made by the Company at the time that Mr Oates was recruited.
Pension commutation to enable par ticipants to receive a lump sum on retirement is permitted within Inland Revenue limits.
For death before retirement, a capital sum equal to four times salar y is payable, together with a spouseÕs pension of two-thirds of the memberÕs
prospective pension at the age of 65. For death in retirement, a spouseÕs pension is paid equal to two-thirds of the memberÕs current pension. In
the event of death after leaving service but prior to commencement of pension, a spouseÕs pension of two-thirds of the accrued preserved pension
is payable. In all circumstances, childrenÕs allowances are also payable, usually up to the age of 16. Substantial protection is also offered in the
event
of serious ill health.
Post-retirement pension increases for pension earned before 6 April 1997 are purely discretionar y, but the practice has been to award annual
increases in line with inflation.
REPO RT OF TH E REM UNERATION CO M M ITTEE
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