Marks and Spencer 2015 Annual Report Download - page 74

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72
MARKS AND SPENCER GROUP PLC
DIRECTORS’ REPORT: GOVERNANCE
0
50
100
150
200
250
300
This graph illustrates the Company’s
performance against the FTSE 100 over
the past six years. The FTSE 100 has been
chosen as the appropriate comparator
asM&S is a constituent of this index.
The calculation of TSR is in accordance
with the relevant remuneration
regulations. As required by the new
regulations, the table below the TSR
chart sets out the remuneration data for
directors undertaking the role of CEO
during each of the last six financial years.
% change 2013/14 – 2014/15
Base salary Benefi ts Annual bonus1
CEO 0.0% -46.3% –
UK employees (average per FTE) 2.0% 0.1% –
1. As no bonus was paid to either the CEO or UK employees in 2013/14 a year-on-year comparison is not possible. The CEO
received a bonus of £596,000 for 2014/15 which is detailed in full in the single fi gure table on page 62. A bonus was payable
to all eligible UK employees for 2014/15.
The table opposite sets out the change in
the CEO’s remuneration (i.e. salary, taxable
benefits and annual bonus) compared with
the change in our UK-based employees.
This group has been chosen as the majority
of our workforce is UK-based. As can be
seen, average FTE salaries for UK employees
increased by 2%, in excess of that provided
to the CEO.
28 March 201529 March 201430 March 20132 April 201229 March 20113 April 201028 March 2009
CEO12009/10 2010/11 2011/12 2012/13 2013/14 2014/15
CEO single figure of remuneration
(£000)
Marc Bolland – 5,998 3,324 2,142 1,568 2,076
Stuart Rose4,294269––––
Annual bonus payment
(% of maximum)
Marc Bolland – 45.80% 34.00% 42.50% 0.00% 30.55%
Stuart Rose97.00%57.40%––––
PSP vesting
(% of maximum)
Marc Bolland – – 31.96% 0.00% 7.60% 4.70%
Stuart Rose0.00%0.00%––––
1. Marc Bolland was appointed CEO on 1 May 2010. His single fi gure for 2010/11 includes recruitment awards made to him at that time to compensate him for incentive awards forfeited on
cessation from his previous employer. Sir Stuart Rose undertook the role of CEO from 31 May 2004 to 30 April 2010.
FIGURE 25: PERCENTAGE CHANGE IN CEO’S REMUNERATION
FIGURE 24: PERFORMANCE AND CEO REMUNERATION COMPARISON
Marks and Spencer Group plc
FTSE 100 Index
Source: Thomson Reuters
In line with the new regulations, the table
opposite illustrates the Company’s
expenditure on pay in comparison to profits
before tax and distributions to shareholders
by way of dividend payments.
The figures are as set out on pages 90, 103
and 104 in the fi nancial statements to the
accounts. Total employee pay is the total
pay for all Group employees. Underlying
Group Profit Before Tax has been used as a
comparison as this is the key financial metric
which the Board consider when assessing
Company performance.
2013/14
£m
2014/15
£m % change
Total employee pay 1,410.9 1406.2 -0.3
Dividends 273.6 280.7 2.6
Underlying Group Profit Before Tax 622.9 661.2 6.1
FIGURE 26: RELATIVE IMPORTANCE OF SPEND ON PAY
REMUNERATION REPORT
CONTINUED
EXECUTIVE DIRECTORS’ REMUNERATION CONTINUED