Marks and Spencer 2016 Annual Report Download - page 57

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FINANCIAL STATEMENTS OUR BUSINESSOUR PERFORMANCEGOVERNANCE
55
ANNUAL REPORT AND FINANCIAL STATEMENTS 2016
ELEMENT APPROACH
Service
contract
Base salary
Buy-out
awards
Benefi ts
Pension
benefi ts
Annual Bonus
Scheme
PSP
> All executive directors have rolling contracts for service which may be terminated by M&S giving 12 months’ notice and the
individual giving six months’ notice.
> Salaries are set by the Committee, taking into consideration a number of factors including the current pay for other executive
directors, the experience, skill and current pay level of the individual and external market forces.
> The Committee may choose to set the salary below that of the market or the other directors with the intention of applying
staged increases.
> The Committee may o er compensatory payments or buy-out awards where an individual forfeits outstanding variable pay
opportunities or contractual rights as a result of their appointment with M&S.
> The specifi cs of any buy-out awards would be dependent on the individual circumstances of recruitment and would be determined
on a case-by-case basis. On assessing such awards, the Committee will seek to make awards on a like-for-like basis to ensure that
the value awarded would be no greater than the value forfeited by the individual. The Committee may choose to apply performance
conditions to these awards.
> The Committee will o er a benefi ts package in line with our benefi ts policy for executive directors. The benefi ts provided will
appropriately refl ect the individual’s circumstances.
> Maximum contribution in line with our Policy.
> Maximum bonus potential will be capped at 200% of salary in line with our Policy.
> Maximum award of up to 300% of salary in line with our Policy.
FIGURE 2: RECRUITMENT POLICY & SERVICE CONTRACTS
The table below summarises the Company’s policy on the recruitment of new executive directors. Similar considerations may also apply
where a director is promoted within the Board.
In addition, the Committee in exceptional
circumstances has discretion to include any
other remuneration component or award
which it feels is appropriate, taking into
account the specific circumstances of the
individual, subject to the limit on variable
remuneration set out above. The rationale
for any such component would be
appropriately disclosed. For example,
for internal promotional appointments
to the Board, the Committee would honour
any pre-existing contractual remuneration
arrangements which may be outside of the
standard policy summarised on page 54.
EXECUTIVE DIRECTORS’ REMUNERATION POLICY CONTINUED
FIND OUT MORE
See Remuneration Report p58 See our Strategy p06-08 See our KPIs p18-21
Read our full Remuneration Policy at www.marksandspencer.com/thecompany