Marks and Spencer 2016 Annual Report Download - page 61

FINANCIAL STATEMENTS OUR BUSINESSOUR PERFORMANCEGOVERNANCE
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 to
ensure a consistent approach.
As reported last year, salary increases,
where awarded, were between 2% and 6%
in recognition of the change in pay review
date, and the individual performance of
each executive director. These pay
increases took e ect from 1 July 2015.
The average pay increase for the executive
directors was 3.0%, in line with the average
increase awarded to the wider UK workforce
over the same 18-month period.
During the year, the Committee discussed
the executive directors’ annual salary
review for all executive directors eligible for
review. Steve Rowe was not eligible for a pay
review in July 2016. The Committee was
minded to award an annual increase of 2%
of salary to Patrick Bousquet-Chavanne,
Laura Wade-Gery and Helen Weir. This
increase is in line with the average pay
increase for the rest of the organisation,
e ective July 2016.
All executive directors have declined their
respective pay increases in recognition
and support of the proposed new pay
arrangements being made elsewhere in
the UK organisation. Further, they have also
indicated an intention to similarly decline
their increases in July 2017, should the
Committee deem it appropriate to award
any such increase.
The table below details the executive
directors’ salaries as at 2 April 2016
and salaries which will take e ect from
1 July 2016.
59
ANNUAL REPORT AND FINANCIAL STATEMENTS 2016
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 life assurance. Executive
directors receive employee product
discount and are eligible to participate
in salary sacrifice schemes such as
Cycle2Work in line with all other employees.
The following sections detail additional disclosure regarding each of the components set out in the previous ‘single figure’ table.
Targets and the resultant outturn under the Annual Bonus Scheme and Performance Share Plan are measured on a 52 week basis.
EXECUTIVE DIRECTORS’ REMUNERATION CONTINUED
PENSION BENEFITS (audited)
Executive directors currently all receive
a 25% salary supplement in lieu of
participation in an M&S pension scheme.
Marc Bolland received a supplement of
30% of salary.
Steve Rowe and John Dixon are deferred
members of the Marks & Spencer UK
Pension Scheme. Details of the pension
accrued during the year ended 2 April 2016
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 601380003,515
Steve Rowe 60 147 0 0 0 3,759
1. The accrued pension entitlement is the deferred pension amount that the director would receive at age 60 if they left
the Company on 2 April 2016. 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: SALARIES
Annual salary
as of
2nd April 2016
£000
Annual salary
as of
1st July 2016
£000
Change
in salary
% increase
Steve Rowe1557 810 45.4
Patrick Bousquet-Chavanne 546 546 0
Laura Wade-Gery 569 569 0
Helen Weir 590 590 0
1. The fi gure for Steve Rowe for 1 July 2016 refl ects his appointment to CEO in April 2016.