Marks and Spencer 2013 Annual Report Download - page 99

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Financial statements Marks and Spencer Group plc Annual report and financial statements 2013 97
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, 147,557 (last year 97,270) options were granted, at a fair value of 73.8p (last year 67.3p).
F. Marks and Spencer Employee Benefit Trust
The Marks and Spencer Employee Benefit Trust (the Trust) holds 8,046,847 shares (last year 10,621,823) with a book value of
£26.9m (last year £34.4m) and a market value of £31.4m (last year £40.2m). 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.
*Nil cost options
For the purposes of calculating the number of shares awarded, the share price used is the average of the mid-market price for the five
consecutive dealing days preceding the grant date.