Marks and Spencer 2009 Annual Report Download - page 68

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64 Marks and Spencer Group plc Annual report and financial statements 2009 Directors’ report
Remuneration report
continued
Base Pay
Benefits
Annual Bonus Scheme:
with compulsory deferral into shares
Performance Share Plan
Policy
Reviewed against:
– salary levels in comparably-sized
companies and major retailers;
– economic climate, market conditions and
Company performance;
– the level of pay awards in the rest of the
business; and
– the role and responsibility of the
individual director.
– provided on a market competitive basis
– aligned to total reward structure for
all employees
– affordability
– drive profitability and sales across the
whole organisation
– stretching targets required to achieve
maximum payment
– Group PBT with an individual performance
element
– aligned to shareholder interests
– primary long-term incentive
– link individual reward with long-term growth
in the Company
– aligned to shareholder interests
– targets based on EPS over a three-year
performance period
Delivery
– monthly in cash
– reviewed annually with any increases
normally awarded from 1 January
– Group’s Pension Scheme – no executive
directors are members. They receive a
25% salary supplement in lieu of pension
– life assurance cover
– car or car cash allowance plus driver
– All-employee share schemes
(Save As You Earn)
– employee product discount
– bonus potential of:
– 60% of salary for ‘on-target’ performance
– 250% of salary for ‘maximum’
performance
– compulsory deferral of 60% of bonus
earned into shares
– shares vest after three years, with no
further performance condition other than
continued employment
– annual awards
– normally up to 200% of salary with
up to 400% of salary in exceptional
circumstances
– awards vest after three years based
on achievement of performance targets
For executive directors, the key elements of remuneration can be summarised as follows:
What is the expected value of future annual remuneration package for executive directors?
The following charts show the total remuneration package split between pay at risk and fixed pay for ‘on-target’ and ‘maximum’ performance.