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OUR PERFORMANCEFINANCIAL STATEMENTS GOVERNANCE OUR BUSINESS
63
ANNUAL REPORT AND FINANCIAL STATEMENTS 2015
BENEFITS (audited)
Each executive director receives a car or
cash allowance and is o ered the benefit
ofa driver. The Company also provides
each director with l ife assurance. E xecutive
directors receive employee product
discount and are eligible to participate
insalary sacrifice schemes such as
Cycle2Work in line with all other employees.
SALARY (audited)
When reviewing salary levels, the Committee
takes into account a number of internal
andexternal factors, including Company
performance during the year, external
market data and the salary review principles
applied to the rest of the organisation
toensure a consistent approach.
No increases were awarded during the year.
The Committee also moved the annual pay
review date from Januar y to July to better
align pay to year end performance and
hence these changes are being made after
18 months.
With e ect from 1 July 2015, the following
salar y increases will be made to the executive
directors, except for Marc Bolland.
Marc Bolland has, at his own request,
notreceived a salary increase since his
appointment in 2010. He has again proposed
not to receive any increase in July 2015.
The agreed increases take account of the
signifi cant per formance ofSteve Rowe in
ensuring the continued success of the Food
business and Patrick Bousquet-Chavanne’s
excellent progress with marketing and
embedding the new global M&S brand.
Neither director has received a salary
increase since their respective
appointments to the Board; these increases
refl ect both this fact in addition to their
signifi cant contributions tothe increased
performance of M&S.
The average increase made to the executive
directors is 3.0% (excluding Helen Weir)
which is in line with the average increase
awarded to the wider UK workforce over
the same 18-month period.
The table below details the executive
directors’ sal aries as at 28 March 2015 and
those which will take e ect from 1 July 2015.
The following sections set out additional disclosure regarding each of the components set out in the previous ‘single figure’ table.
EXECUTIVE DIRECTORS’ REMUNERATION CONTINUED
PENSION BENEFITS (audited)
With the exception of the Chief Executive
Officer (CEO), executive directors receive
a 25% salary supplement in lieu of
membership of the Your M&S Pension
Saving Plan. The CEO receives a supplement
of 30% of salary.
John Dixon and Steve Rowe are deferred
members of the Marks & Spencer UK
Pension Scheme. Details of the pension
accrued by them during the year ended
28March 2015 are shown below.
FIGURE 11: PENSION BENEFITS
Normal
retirement
age
Accrued
pension
entitlement
as at
year end1
£000
Additional
value
on early
retirement
£000
Increase
in accrued
value
£000
Increase
in accrued
value
(net of
inflation)
£000
Transfer
value of
total
accrued
pension
£000
John Dixon 601380103,204
Steve Rowe 601470203,442
1. The accrued pension entitlement is the deferred pension amount that the director would receive at age 60 if they left
the Company on 28 March 2015. The Listing Rules require this to be disclosed excluding infl ation.
All transfer values have been calculated on the basis of actuarial advice in accordance with the current Transfer Value
Regulations. The transfer values of the accrued entitlement represent the value of the assets that the pension scheme
would transfer to another pension provider on transferring the scheme’s liability in respect of the director’s pension
benefi ts. They do not represent sums payable to the director and therefore cannot be added meaningfully to annual
remuneration.
FIGURE 10: EXECUTIVE DIRECTORS’ SALARIES
Current
annual
salary
£000
Annual salary
as of
1st July 2015
£000
Change
in salary
% increase
Marc Bolland 975 975 0
Patrick Bousquet-Chavanne 525 546 4
John Dixon 600 612 2
Steve Rowe 525 557 6
Laura Wade-Gery 552 569 3
Helen Weir1590 590 –
1. Helen Weir’s current annual salary is from her date of appointment on 1 April 2015.