Marks and Spencer 2007 Annual Report Download - page 76

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1122 SSHHAARREE--BBAASSEEDD PPAAYYMMEENNTTSS continued
CCPPeerrffoorrmmaannccee SShhaarree PPllaann
The Performance Share Plan is the primary long-term incentive plan for approximately 100 of the most senior executives and was
first approved by shareholders in 2005. Under the Plan, annual awards, based on a percentage of salary, may be offered. The extent
to which the awards vest is based on earnings per share growth over three years. Further details are set out in the Remuneration
report on page 45. Awards under this scheme have been made in 2004/05 and 2005/06.
During the year, 3,511,040 shares (last year 3,694,559) were awarded under the Plan. The weighted average fair value of the shares
awarded was 572.9p (last year 365.7p).
D
DDDeeffeerrrreedd SShhaarree BBoonnuuss PPllaann
The Deferred Share Bonus Plan was introduced in 2005/06 as part of the annual bonus scheme for approximately 450 of the most
senior managers. As part of the bonus scheme, the managers are required to defer a proportion of any bonus paid into shares
which will be held for three years. There are no further performance conditions on these shares, other than continued employment,
and the value of any dividends earned during the deferred period will be paid at the end of the period. Further details are set out in
the Remuneration report on page 45.
During the year, 1,923,413 shares were awarded under the Plan in relation to the 2005/06 annual bonus. The fair value of the shares
awarded was 550.0p.
E
ERReesst
trriicctteedd SShhaarree PPllaann
A Restricted Share Plan was established in 2000 as part of the reward strategy for retention of senior employees who are vital to the
success of the business recovery and growth. The Plan operates for senior executives below Executive Director level. Awards under
the Plan are made as part of ongoing reviews of reward packages, and recruitment tools for new employees. The shares are held in
trust for a period of between one and three years, at which point they are released to the employee, subject to them still being in
employment.
During the year, 38,622 shares (last year 564,336) have been awarded under the Restricted Share Plan. The weighted average fair
value of the shares awarded was 578.0p (last year 331.1p).
F
FEExxeeccuuttiivvee SShhaarree MMaattcchhiinngg PPllaann
The Executive Share Matching Plan for senior management was introduced in 2002, since when there have been annual awards
in 2002, 2003 and 2004. The Plan currently operates for one member of senior management, and it is intended that no further
awards are made under this Plan. Participants were required to invest one-third of any annual bonus earned in shares of the
Company. The pre-tax value of the invested bonus would be matched by an award of shares, with the extent of the match
determined by the Total Shareholder Return performance measure. No awards have been made during the year (last year nil).
G
GUUnniitteedd KKiinnggddoomm SShhaarree IInncceennttiivvee PPllaann
The Share Incentive Plan is a discretionary, all-employee plan, approved by the Inland Revenue, under which Freeshares may be
allocated by the Company. The last award was made in July 2003.
H
HSShhaarree MMaattcchhiinngg DDeeaall PPllaann
The Share Matching Deal Plan was introduced in 2006 for those employees who were eligible to receive a cash-only bonus. The
scheme was not open to those employees who participated in the Deferred Share Bonus Plan. The Plan allows employees to invest
a proportion of their bonus in shares of the Company. These investment shares must be held by the participant for three years,
during which time they will receive dividends. At the end of the three-year holding period, if the participant is still in employment with
the Company, and still holds the investment shares, they will receive one matching share for every four that they bought.
During the year, 41,086 matching shares have been awarded under the Share Matching Deal Plan, at a fair value of 596.4p.
Notes to the financial statements continued
7
744MARKS AND SPENCER GROUP PLC wwwwww..mmaarrkkssaannddssppeenncceerr..ccoomm//aannnnuuaallrreeppoorrtt22000077