Marks and Spencer 2012 Annual Report Download - page 95

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Financial statements Marks and Spencer Group plc Annual report and financial statements 2012 93
Overview Strategic review Financial review Governance Financial statements and other information
13 Share-based payments continued
E. Republic of Ireland Save As You Earn Scheme
Sharesave, the Company’s Save As You Earn Scheme was introduced in 2009 to all employees in the Republic of Ireland for a
ten year period, after approval by shareholders at the 2009 AGM. The scheme is subject to Irish Revenue rules which limit the
maximum monthly saving to €500 per month. The Company chose in 2009 to set a monthly savings cap of €320 per month to
align the maximum savings amount allowed within the UK scheme. 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. The price at which the options may be offered is 80% of the average mid-market price for three consecutive days
preceding the offer date. Options cannot normally be exercised until a minimum of three years has elapsed.
During the year, 97,270 (last year 147,100) options were granted, at a fair value of 67.3p (last year 124.9p).
F. Marks and Spencer Employee Benefit Trust
The Marks and Spencer Employee Benefit Trust (the Trust) holds 10,621,823 shares (last year 8,851,592) with a book value
of £34.4m (last year £27.6m) and a market value of £40.2m (last year £29.8m). These shares were acquired by the Trust in the
market and are shown as a reduction in retained earnings in the consolidated statement of financial position. The Trust used
funds provided by Marks and Spencer plc to meet the Group’s obligations. Awards are granted to employees at the discretion of
Marks and Spencer plc and shares awarded to employees by the Trust in accordance with the wishes of Marks and Spencer plc
under senior executive share schemes. Dividends are waived on all of these plans except for the Deferred Bonus Share Plan and
Restricted Share Plan where dividends are paid via a Dividend Reinvestment Plan for awards made in the form of forfeitable shares.