Marks and Spencer 2012 Annual Report Download - page 62

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Governance Marks and Spencer Group plc Annual report and financial statements 2012 60
Remuneration report continued
Executive Share Option Scheme: long-term incentive
The scheme was adopted at the 2005 AGM, but there is
currently no intention to use the scheme on a regular basis.
No grants have been awarded under the Executive Share
Option Scheme for 2011/12. The Committee will continue to
review the use of the scheme and retains the flexibility to
grant awards under the scheme if appropriate.
All outstanding awards met their performance targets in
previous years and are exercisable by participants. Individual
executive directors have options granted in 2004 under the
2003 scheme as shown in the table on page 66.
What were the outcomes in 2011/12 for the short-term and long-term incentive schemes?
Annual Bonus Scheme outcome for 2011/12
In 2011/12, 60% of the executive directors’ bonus was based on Group PBT performance with the remaining 40% based on the
achievement of individual objectives, independent of Group PBT (and subject to achieving the ‘threshold’ Group PBT target).
Summary of Objectives (total)
2011/12 Marc Bolland Kate Bostock John Dixon Steven Sharp Alan Stewart Laura Wade-Gery
Financial
Measure
Group PBT Group PBT Group PBT Group PBT Group PBT Group PBT
Collective
Objectives
Total UK
operating costs
Total UK
operating costs
Total UK
operating costs
Total UK
operating costs
Total UK
operating costs
Total UK
operating costs
GM
operating costs
Food
operating costs
New store
environment
project costs
Finance, IT &
Logistics
operating costs
E-Commerce
operating costs
Individual Plan A
objectives
Individual Plan A
objectives
Individual Plan A
objectives
Individual Plan A
objectives
Individual Plan A
objectives
Individual Plan A
objectives
Examples
of
achievement
against
business
area targets
– Developed
multi-channel
capability
(organisation,
new platform
and international
websites)
– Relaunched
GM sub-brands
and drove GM
market share
– Improved
in-store
availability and
drove innovation
across new and
existing ranges
– Developed
sub-brand
identities and
delivered
communication
plans
– Lead strategic
review of GM
logistics and
merchandise
planning systems
– Delivered key
milestones towards
our new
multi-channel
platform
– Developed an
international
organisation
(people, process
structure)
– Segmented
Home into
lifestyle
categories
– Provided greater
customer choice
– Delivered a
more inspiring
shopping
environment
and customer
experience
– Improved
organisational
alignment and
accountability
with new
management
reporting system
– Through innovation,
provided our
customers with
greater access to
our products
All-Employee Share Schemes: long-term incentive
Executive directors can participate in Sharesave, the
Company’s Save As You Earn (SAYE) scheme which is
open to all employees. The current scheme was approved
by shareholders for a ten year period at the 2007 AGM.
The scheme is subject to HMRC rules which limit the
maximum monthly savings to £250. When the savings
contract is started, options are granted to acquire the number
of shares that the total savings will buy when the contract
matures, at a discounted price set at the start of the scheme.
Options cannot normally be exercised until a minimum of
three years have elapsed.
The details of the options granted to executive directors are
shown in the table on page 66.