Marks and Spencer 2008 Annual Report Download - page 55

marksandspencer.com/annualreport08 MARKS AND SPENCER GROUP PLC 53
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Part 2: Audited information
1 Directors’ emoluments Cash
Salary/ allowance Total Total
fee and benefits6Bonus 2008 2007
£000 £000 £000 £000 £000
Chairman
Lord Burns 450 3 – 453 339
Chief Executive
Sir Stuart Rose11,070 305 – 1,375 2,302
Executive directors
Kate Bostock232 7 – 39 –
Ian Dyson3542 156 – 698 1,151
Steven Esom434 10 250 294 –
Steven Sharp5535 166 – 701 1,165
Non-executive directors
Jeremy Darroch 73 – – 73 61
Martha Lane Fox 56 – – 56 –
Steven Holliday 67 – – 67 60
Sir David Michels779 – – 79 68
Louise Patten 73 – – 73 58
Directors retiring from the Board during the year
Jack Keenan822 – – 22 68
Former directors9, 10 –––262 251
Total 3,033 647 250 4,192 5,523
1 Sir Stuart Rose received a salary increase from £1,050,000 to £1,130,000 effective from 1 January 2008. No bonus was earned in 2007/08.
2 Kate Bostock was promoted to the Board on 10 March 2008 at a salary of £500,000. No bonus was earned as an executive director in 2007/08 under the Annual Bonus
Scheme. £280,000 was earned in 2007/08, prior to her appointment to the Board, as part of a three-year cash bonus retention arrangement. If earned, the remaining two
instalments of this bonus arrangement will be paid in 2008/09 and 2009/10. Her Cash allowance and benefits include a 25% supplement on her salary earned above the
Pension Scheme cap as she was a member of the Retirement Plan during the year. In addition, the Company’s contribution into the Retirement Plan for 2007/08 for the
period when she was an executive director was £1,153.
3 Ian Dyson received a salary increase from £525,000 to £565,000 effective from 1 January 2008. On 10 March 2008 his salary was increased to £675,000 to reflect his
increased responsibilities as Group Finance and Operations Director. No bonus was earned in 2007/08.
4 Steven Esom was promoted to the Board on 10 March 2008 at a salary of £535,000. No bonus was earned as an executive director in 2007/08 under the Annual Bonus
Scheme. A one-off bonus of £500,000 was earned in 2007/08 as part of his contractual agreement on recruitment, of which 50% is deferred into shares for three years.
These shares will be granted on 9 June 2008.
5 Steven Sharp received a salary increase from £525,000 to £565,000 effective from 1 January 2008. No bonus was earned in 2007/08.
6 The elements included in the Cash allowance and benefits column of the table are described in detail in the Executive directors’ remuneration section on page 49 and have
been audited.
7 In addition to the fees disclosed in the above table, the Company meets a due proportion of Sir David Michel’s general office and administration costs that relate to his
Marks and Spencer Board duties. In the year under review, this amounted to £10,000. This arrangement will cease on his appointment to Deputy Chairman on 1 June 2008.
8 Jack Keenan retired from the Board on 10 July 2007.
9 The total for 2006/07 included the cost of supplying a driver and fleet vehicle to ex-Chairman Paul Myners. For 2007/08 the costs incurred by the Company were nil.
10 The £262,000 in 2008 (£251,000 in 2006) 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 £82,148 (£78,686 in 2007) payable until 22 April 2009, and Derek Hayes who received £76,422 (£73,202 in 2007)
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 2008, was £103,233 (£98,873 in 2007).
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