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62
MARKS AND SPENCER GROUP PLC
DIRECTORS’ REPORT: GOVERNANCE
Year
Salary
£000
Benefi ts3
£000
Total
Bonus4
£000
Total PSP
vested5
£000
Pension
benefi ts6
£000
Total
£000
Marc Bolland 2014/15 975 19 596 193 293 2,076
2013/14 975 41 0 259 293 1,568
Patrick Bousquet-Chavanne12014/15 525 36 222 59 131 973
2013/14 380 29 0 – 95 504
John Dixon 2 014 / 15 6 0 0 2 5 217 111 15 0 1,103
2013/14 600 46 0 143 150 939
Steve Rowe 2014/15 525 42 653 60 131 1,411
2013/14 525 53 0 77 131 786
Alan Stewart22014/15 162 6 0 0 40 208
2013/14 579 34 0 146 145 904
Laura Wade-Gery 2014/15 552 21 219 107 138 1,037
2013/14 552 26 0 167 138 883
REMUNERATION
REMUNERATION REPORT
The Remuneration Committee annually
reviews the senior remuneration framework
and considers whether the existing incentive
arrangements remain strongly challenging
in the context of the business strategy,
current external guidelines and a range of
internal factors including the remuneration
policy and pay arrangements throughout
the rest of the organisation. The table below
shows the performance measures used in
the 2014/15 incentive schemes and how
these align with the key performance
indicators detailed on pages 14-15. As
shown, there is a strong linkage between
the key performance indicators which
are integrated in the directors’ incentive
schemes. This ensures that directors are
clearly aligned and motivated to deliver
the strategy.
Looking ahead, for 2015/16, the executive
directors’ incentive arrangements will
include objectives against free cash fl ow,
GM UK LFL sales, GM gross margin, M&S.com
sales growth and International sales and
operating profi t. Further details are set out
on pages 65 and 67.
FIGURE 8: STRATEGIC ALIGNMENT OF PAY See KPIs on p14-15
EXECUTIVE DIRECTORS’ REMUNERATION
1. The amounts shown for 2013/14 refl ect that Patrick Bousquet-Chavanne joined the Board on 10 July 2013.
2. The amounts shown for 2014/15 refl ect that Alan Stewart resigned from the Board on 10 July 2014.
3. Benefi ts include the value of car allowance and intrinsic value of SAYE in addition to the taxable value of car, driver and life assurance, as applicable to each director and as described
on page 63.
4. Half of any award will be deferred into Company shares for a period of three years. Further details of the 2014/15 Annual Bonus Scheme are shown on pages 64 and 65.
5. The value of awards vesting in 2013/14 has been restated to refl ect the actual value of dividend equivalents and share price at the time of vesting. The value of awards vesting in 2014/15
has been estimated based on the three-month average share price from 2January 2015 – 27 March 2015 as these awards do not vest until after the end of the fi nancial year. This value also
includes the anticipated value of dividend equivalents which will be payable in July 2015 (and January 2016 for Patrick Bousquet-Chavanne). These estimated fi gures will be restated in
next year’s report.
6. Pension benefi ts comprise the value of cash provided in lieu of participation in the Your M&S Pension Saving Plan.
See Policy table on p54-55
FIGURE 9: TOTAL SINGLE FIGURE REMUNERATION (audited)
FINANCIAL OBJECTIVES KPI INCENTIVE SCHEME
Grow group revenue Group revenue PSP
Increase earnings & returns Underlying Group PBT Annual Bonus Scheme
ROCE PSP
EPS PSP
NON-FINANCIAL OBJECTIVES KPI INCENTIVE SCHEME
Improving product sustainability Products with Plan A qualities Annual Bonus Scheme
STRATEGIC OBJECTIVES KPI INCENTIVE SCHEME
Driving growth
International and M&S.com revenue
PSP
Improve profi tability International operating profi t and GM/Food gross margin Annual Bonus Scheme