Marks and Spencer 2007 Annual Report Download - page 50

Remuneration report continued
PART 2: AUDITED INFORMATION
1 Directors’ emoluments
Cash
Salary/ allowance Total Total
fee and benefits5Bonus42007 2006
£000 £000 £000 £000 £000
Chairman
Lord Burns1337 2 – 339 88
Chief Executive
Stuart Rose2975 277 1,050 2,302 2,305
Executive directors
Ian Dyson3486 140 525 1,151 685
Steven Sharp3488 152 525 1,165 364
Non-executive directors
Jeremy Darroch 61 – – 61 8
Steven Holliday 60 – – 60 50
Jack Keenan 68 – – 68 60
Sir David Michels 68 – – 68 4
Louise Patten 58 – – 58 8
Directors retiring from the Board during the year
Kevin Lomax629––29 60
Paul Myners767 57 – 124 203
Former directors8251 1,282
Total 2,697 628 2,100 5,676 5,117
1Lord Burns was appointed Chairman on 11 July 2006. His fee on appointment increased to £400,000 from his previous salary as Deputy Chairman of £175,000.
2Stuart Rose received a salary increase from £950,000 to £1,050,000 effective from 1 January 2007. His total bonus earned in 2006/07 was £2,625,000.
3Ian Dyson & Steven Sharp received a salary increase from £475,000 to £525,000 effective from 1 January 2007. They each received a total bonus of £1,312,500
for 2006/07.
4For all executive directors, 40% of the total bonus is paid in cash as shown in the table, and 60% paid in shares as part of the Deferred Share Bonus Plan as described
under the Annual Bonus Scheme on page 45. The Deferred Share Bonus Plan shares will be granted in June 2007.
5The elements included in the Cash allowance and benefits column of the table are described in detail in the Salaries and benefits section on page 45 and have
been audited.
In addition, non-executive directors are entitled to reimbursement of any expenses incurred as a result of their Board duties. For 2006/07, this included £20,000 for
Sir David Michels, Senior Independent Director, who was reimbursed for general office and administration costs related to his Marks and Spencer Board duties.
6Kevin Lomax retired from the Board on 31 August 2006.
7Paul Myners retired from the Board on 11 July 2006. The Company agreed to provide Paul Myners with the services of a driver and fleet vehicle for a period of up to
two years from August 2006. The cost of that arrangement for the period August 2006 to March 2007 inclusive was £56,245. The remaining £838 were benefits
received between April and July 2007 whilst he was Chairman.
8The £251,000 in 2007 (last year £246,000) relates to payments to former directors under the Early Retirement Plan. Under this plan, the Remuneration Committee
could, at its discretion, offer an unfunded Early Retirement Pension, separate from the Company pension, which was payable from the date of retirement to age 60.
With effect from 31 March 2000, the Early Retirement Plan was withdrawn but payments continue for awards made before this date.
The former directors are James Benfield who received £78,686 (last year £76,992) payable until 22 April 2009, and Derek Hayes who received £73,202
(last year £71,626) payable until 19 November 2008.
The pension scheme entitlement for Clinton Silver is supplemented by an additional, unfunded pension paid by the Company, which for 2007 was £98,873
(last year £96,745).
For 2006, the additional £1,036,000 relates to payments to directors who retired from the Board during that year.
48 MARKS AND SPENCER GROUP PLC www.marksandspencer.com/annualreport2007