Marks and Spencer 2016 Annual Report Download - page 69

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FINANCIAL STATEMENTS OUR BUSINESSOUR PERFORMANCEGOVERNANCE
67
ANNUAL REPORT AND FINANCIAL STATEMENTS 2016
EXECUTIVE DIRECTORS’ REMUNERATION CONTINUED
0
50
100
150
200
250
300
This graph illustrates the Company’s
performance against the FTSE 100
over the past seven 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. The table
below the TSR chart sets out the
remuneration data for directors
undertaking the role of CEO during
each of the last seven financial years.
% change 2014/15 – 2015/16
Base salary Benefi ts Annual bonus
CEO 0.0% 0.0% 4.4%
UK employees (average per FTE) 3.9% 0.6% 37.3%
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 3.9%, in excess
of that provided to the CEO.
28 March 2015 2 April 201629 March 201430 March 20132 April 201229 March 20113 April 2010
28 March 2009
CEO12009/10 2010/11 2011/12 2012/13 2013/14 2014/15 2015/16
CEO single figure of remuneration
(£000)
Marc Bolland – 5,998 3,324 2,142 1,568 2,095 2,039
Stuart Rose 4,294 269 – – – – –
Annual bonus payment
(% of maximum)
Marc Bolland – 45.80% 34.00% 42.50% 0.00% 30.55% 31.90%
Stuart Rose 97.00% 57.40% – – – – –
PSP vesting
(% of maximum)
Marc Bolland – – 31.96% 0.00% 7.60% 4.70% 4.80%
Stuart Rose 0.00% 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. 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
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 and share buyback.
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.
2014/15
£m
2015/16
£m % change
Total employee pay 1,406.2 1486.7 5.7
Total returns to shareholders1280.7 451.7 60.9
Underlying Group Profit Before Tax 661.2 684.1 3.5
1. Total returns to shareholders for 2015/16 includes distribution to shareholders via share buyback.
FIGURE 26: RELATIVE IMPORTANCE OF SPEND ON PAY