Marks and Spencer 2010 Annual Report Download - page 69

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To find out more, visit marksandspencer.com/annualreport2010 65
Contracts
What are the current service contracts and terms of
employment for directors?
Executive directors
All executive directors and senior managers have service contracts
that can be terminated by the Company giving 12 months’ notice
and by the employee giving six months’ notice.
The Company retains the right to terminate the contract of any
executive director summarily, in accordance with the terms of their
service agreement, on payment of a sum equal to the contractual
notice entitlement of 12 months’ salary and specified benefits.
Contract terms and current annual salaries/fees for all members of the Board during the financial year
Name Date of appointment
Notice period/
unexpired term
Basic
salary/fee
£000
Committee
member fee
£000
Committee
chair/SID fee
£000
Current
annual
salary/fee
£000
Executive Chairman
Sir Stuart Rose131/05/2004 12 mths/6 mths 1,160 – – 1,160
Deputy Chairman
Sir David Michels 01/03/2006 6 mths/6 mths 245 – – 245
Executive directors
Kate Bostock 10/03/2008 12 mths/6 mths 575 – – 575
John Dixon 09/09/2009 12 mths/6 mths 512 – – 512
Ian Dyson227/06/2005 12 mths/6 mths 692 – – 692
Steven Sharp 0 8/11/ 20 0 5 12 mths/6 mths 640 – – 640
Non-executive directors
Jeremy Darroch 01/02/2006 3 mths/3 mths 55 612 73
Martha Lane Fox 01/06/2007 3 mths/3 mths 55 12 – 67
Steven Holliday 15/07/2004 3 mths/3 mths 55 12 12 79
Louise Patten 01/02/2006 3 mths/3 mths 55 12 – 67
Jan du Plessis 01/11/2008 3 mths/3 mths 55 12 – 67
1 The Company gave Sir Stuart Rose 12 months’ notice of termination of his contract on 18 March 2010. Sir Stuart Rose has agreed to reduce his salary from £1,160,000 to
£875,000 with effect from 31 July 2010 until the end of his notice period as recognition of his altered role once the new Chief Executive has been integrated into the Company.
Sir Stuart Rose’s maximum bonus potential for 2010/11 will be calculated by reference to the higher salary until 31 July 2010 and by reference to the reduced salary from
1 August 2010.
2 Ian Dyson resigned on 5 May 2010. His agreed leaving date will be 31 August 2010.
What are the executive directors’ external board appointments?
The Company recognises that executive directors may be invited to become non-executive directors of other companies and that these
appointments can broaden their knowledge and experience to the benefit of M&S. The individual director retains the fee, the details of
which are shown below for this financial year:
Company
Fee
£000
Sir Stuart Rose Land Securities Group plc 57
Ian Dyson Betfair Group Ltd 11
Steven Sharp Adnams plc 27
Operating & Financial review p16
Governance
Financial statements p78
For all current executive directors, the Company reserves the right
on termination to make phased payments which are paid in monthly
instalments and subject to mitigation. Entitlement to participate in
share schemes ceases on termination.
Deputy Chairman
Sir David Michels has an agreement for service which requires
six months’ notice by either party.
Non-executive directors
Non-executive directors have agreements for service with the
Company for an initial three-year term, which can be terminated
on three months’ notice by either party.