Marks and Spencer 2003 Annual Report Download - page 17

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www.marksandspencer.co m 15
(c) All-Employee Share Schemes
Executive directors can also participate in the share schemes open to all employees of the Company, currently the Share
Incentive Plan and the SAYE scheme.
Employees have maintained their strong commitment to share ownership in recent years, and currently 42,000 employees
hold approximately 26 million shares in their own right and 30,000 employees hold options on 71 million shares under the
SAYE scheme.
Details of grants and awards made to executive directors under all schemes are given in section 5 of this report.
Shareholding policy
A requirement was introduced in 2002 that the executive directors within five years of 1 June 2002 or within five years
of appointment (whichever is the later) should hold shares whose market value at that time is equivalent to or greater than
their then current gross annual base salary.
Service contracts
All members of senior management have service contracts which can be terminated by the Company with 12 months’
notice. Exceptions may exist where new recruits have been granted longer notice periods for the initial period of their
employment.
The Company retains the right to terminate the contract of any director summarily in accordance with the terms of their
service agreement, on payment of a sum equivalent to the contractual notice entitlement of 12 months’ salary and benefits
and payment in respect of future bonus entitlement for that period based on a proportion of the on target bonus. However,
entitlement to participate in future options under the Company’s share schemes ceases on summary termination.
The executive directors have rolling service contracts which can be terminated by the Company giving 12 months’
notice and by the director giving six months’ notice, with the exception of Vittorio Radice who was initially appointed
with a service contract entitling him to two years’ notice, reducing proportionately during the first year of employment
to 12 months’ notice following the first anniversary of his appointment.
Name Date of appointment Notice period
Luc Vandevelde 28/02/00 12 mths
Roger Holmes 01/01/01 12 mths
Justin King 01/09/02 12 mths
Alan McWalter101/01/00 n/a
David Norgrove 18/09/00 12 mths
Laurel Powers-Freeling 06/11/01 12 mths
Vittorio Radice 03/03/03 23 mths
Alison Reed 11/07/01 12 mths
1Alan McWalter retired from the Board on 10 July 2002.
Non-executive directors
The non-executive directors have service agreements with the Company for an initial three-year term which are terminable
on three months’ notice.
Name Date of appointment Notice period/unexpired term
Brian Baldock101/10/96 3 mths/–
Tony Ball201/09/00 n/a
Jack Keenan 01/09/01 3 mths/17 mths
Kevin Lomax 01/09/00 3 mths/5 mths
Paul Myners 02/04/02 3 mths/24 mths
Dame Stella Rimington101/01/97 3 mths/–
1Brian Baldock and Stella Rimington have both served two terms of three years and continue in office with a three month notice period.
2Tony Ball retired from the Board on 4 September 2002.
External appointments
The Company recognises that executive directors may be invited to become non-executive directors of other companies
and that such appointments can broaden their knowledge and experience, to the benefit of the Company. Fees are normally
retained by the individual director.