Marks and Spencer 2016 Annual Report Download - page 55

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53
ANNUAL REPORT AND FINANCIAL STATEMENTS 2016
FINANCIAL STATEMENTS OUR BUSINESSOUR PERFORMANCEGOVERNANCE
ANNUAL BONUS SCHEME 2015/16 See more on p60-61
PERFORMANCE SHARE PLAN (PSP) 2015/16 See more on p62-63
Bonus payments made in respect of
performance for the year were between
21% and 53% of maximum bonus
opportunity. This resulted in payments
ranging from £207,000 to £622,000 with
half of all amounts being deferred into
shares for three years, subject to malus
provisions being met.
Further detail of the performance targets
and the extent to which each were achieved
are shown on page 60 of this report.
See more on Annual Bonus Scheme on p60
The chart opposite illustrates the results
of the three-year performance against
the PSP targets which were set in 2013.
Awards will vest in June 2016, with an
estimated vesting value detailed in the
single fi gure table.
EPS weighting/performance
Three-year EPS growth of 2.9% was below
the 5% required for threshold vesting.
ROCE weighting/performance
Average ROCE over the last three years
was 14.7%, below the 15.0% required for
this element of the award to vest.
Revenue weighting/performance
As a result of 2015/16 Multi-Channel
revenue performance, 4.8% of awards
will vest. Other revenue measures were
not met, meaning these elements of the
award will lapse.
See more on Performance Share Plan
on p62
KEY PERFORMANCE MEASURES
ALIGNED TO REMUNERATION Performance Share Plan (PSP) Annual Bonus Scheme
34.8p
EARNINGS PER SHARE
£10.4bn
GROUP REVENUE
£684.1m
UNDERLYING PBT
15.0%
RETURN ON CAPITAL
EMPLOYED
£539.3m
FREE CASH FLOW
(PRE SHAREHOLDER
RETURNS)
Marc Bolland
Steve Rowe
Helen Weir
Patrick Bousquet-Chavanne
Laura Wade-Gery
Corporate element (max 60%) Individual element (max 40%)
Maximum bonus possible Actual bonus earned
15.9% 16.0%
27.6%
10.0%
28.4%
33.6%
5.9%
10.7%
5.9%
24.1%
EPS
Maximum possible 50%
Actual performance 0%
PSP performance weighting
ROCE
Maximum possible 20%
Actual performance 0%
Revenue*
Maximum possible 30%
Actual performance 4.8%
*Weighting (by revenue source)
UK 10%
International 10%
Multi-channel 10%
*
R
E
V
E
N
U
E
3
0
%
E
P
S
5
0
%
R
O
C
E
2
0
%