Marks and Spencer 2004 Annual Report Download - page 39

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37
www.marksandspencer.com
10. EMPLOYEES
A Aggregate remuneration
The aggregate remuneration and associated costs of Group employees were:
2004 2003
Before
Before exceptional
exceptional Exceptional items Exceptional Total
items items Total As restated items As restated
£m £m £m £m £m £m
Wages and salaries 845.3 23.0 868.3 834.1 1.0 835.1
Share Incentive Plan (see note 10C) –––8.8 – 8.8
Social security costs 55.7 0.1 55.8 47.4 0.3 47.7
Pension costs (see note 11) 123.8 – 123.8 131.8 – 131.8
Employee welfare and other personnel costs 42.2 1.4 43.6 42.0 1.2 43.2
Employee costs 1,067.0 24.5 1,091.5 1,064.1 2.5 1,066.6
Exceptional employee costs include £22.5m (last year £nil) in connection with the Head Office restructuring programme and
£2.0m (last year £2.5m) relating to the Head Office relocation.
B Average number of employees
The average number of employees of the Group during the year was: 2004 2003
UK stores Management and supervisory categories 4,419 4,335
Other 56,008 53,191
UK head office Management and supervisory categories 2,755 2,616
Other 919 997
Financial Services Management and supervisory categories 265 200
Other 1,354 1,267
Overseas 4,381 4,527
70,101 67,133
If the number of hours worked was converted on the basis of a normal working week, the equivalent average number
of full-time employees would have been 46,654 (last year 47,756).
C United Kingdom Share Incentive Plan and Republic of Ireland Profit Share Scheme
The Company has adopted the free share element of the new all-employee Share Incentive Plan, which is approved by the
Inland Revenue. This is a discretionary plan and the Company will decide each year whether an award is to be made,
depending upon the year-end profits. The Republic of Ireland Profit Sharing Scheme remains unchanged. No award will be
made in July 2004 in respect of the financial year ended 3 April 2004. Last year, an award of £8.8m, representing 2.0% of the
earnings of 53,418 eligible employees (with a maximum award of approximately £220) was made.
These shares are purchased in the market: 2,556,366 ordinary shares were purchased by the Profit Sharing Trustees in respect
of the 2002/03 allocation.
D United Kingdom Employees’ Save As You Earn Share Option Scheme
Under the terms of the Scheme, the Board may offer options to purchase ordinary shares in the Company once in each
financial year to those employees who enter into an Inland Revenue approved Save As You Earn (SAYE) savings contract.
The price at which options may be offered is 80% of the market price for three consecutive dealing days preceding the date
of offer. The options may normally be exercised during the period of six months after the completion of the SAYE contract,
either three, five or seven years after entering the Scheme.
Outstanding options granted under the United Kingdom Employees’ Save As You Earn Share Option Scheme are as follows:
Number of shares Option
Options granted 2004 2003 price
January 1996 Expired 1,180,359 330p
January 1997 1,499,213 1,564,432 389p
January 1998 1,160,288 1,607,993 467p
January 1999 3,832,848 4,262,582 324p
January 2000 11,292,814 13,540,426 223p
January 2001 15,825,503 26,601,132 156p
January 2002 8,720,985 10,462,668 250p
January 2003 9,729,981 11,809,605 283p
January 2004 12,811,587 – 228p