Marks and Spencer 2004 Annual Report Download - page 21

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The Marks & Spencer Retirement Plan
Executive directors, along with other employees joining the Company on or after 1 April 2002 are, on completion of one
year’s service, invited to join the contributory Retirement Plan. The Plan is a defined contribution arrangement, where
employees may choose to contribute between 3-15% of their salary. Member contributions of 3-6% are matched by
Company contributions of 6-12%. The employee is free to choose from a range of investment vehicles, where the total
contribution will be invested. During the first year of membership, employees contribute 3-15% of their salary and receive
6-24% from the company to enable the employee to be compensated for the waiting period, if they so wish.
During the one-year waiting period before joining the Plan, employees will be covered for death in service by a capital
payment of twice salary, increasing to four times salary from the date of joining the Plan, subject to the statutory earnings cap.
Service contracts
All members of senior management have service contracts. These contracts can be terminated by the Company providing
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.
However, entitlement to participate in future options under the Company’s share schemes ceases on summary termination.
All executive directors have rolling service contracts, which can be terminated by the Company giving 12 months’ notice and
by the director giving 6 months’ notice.
Mark McKeon was appointed to the Board on 5 April 2004 with a 12-month rolling contract. His current annual salary is
£320,000 and no remuneration was received in the year 2003/04.
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. The individual
director retains the fees. The following executive directors served as non-executive directors elsewhere during the year and
received fees as follows: Luc Vandevelde (Vodafone Group plc – £50,000); Vittorio Radice (Abbey National plc – £45,000);
Alison Reed (HSBC Bank plc – £32,000, British Airways plc – £10,000).
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. Barbara Cassani resigned from her position with effect from 30 April 2004.
Name Date of appointment Notice period/unexpired term
Brian Baldock 01/10/96 3 mths/3 mths
Barbara Cassani 01/10/03 3 mths/1 mth
Jack Keenan 01/09/01 3 mths/3 mths
Kevin Lomax 01/09/00 3 mths/3 mths
Paul Myners 02/04/02 3 mths/3 mths
Dame Stella Rimington 01/01/97 3 mths/3 mths
Performance graph
This graph illustrates the performance of the Company against the FTSE 100 over the past five years. The FTSE 100 has been
chosen as it is a recognised broad equity market index of which the Company has been a member throughout the period.
Performance, as required by the legislation, is measured by TSR (share price growth plus dividends paid).
Total Shareholder Return
Marks & Spencer FTSE 100 Index Source: Datastream
27 Mar 99 1 Apr 00 31 Mar 01 30 Mar 02 29 Mar 03 3 Apr 04
The above graph looks at the value, at 3 April 2004, of £100 invested in Marks & Spencer Group on 27 March 1999 compared with the value of £100 invested in the
FTSE 100 Index over the same period. The other points plotted are the values at the intervening financial period-ends.
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