John Lewis Partnership plc annual report and accounts 2012
Notes to the accounts continued
7 Profit and loss of the company for the financial year
As permitted by Section 408 of the Companies Act 2006, John Lewis Partnership plc has not presented its own income statement. The result dealt with in the accounts of the company amounted to £0.1m profit (2011: £0.1m profit).
8 Directors’ emoluments
Table showing Director's emoluments
2012 (£000) | 2011 (£000)
Directors’ remuneration including Partnership bonus* of 14% (2011: 18%) | 4,215 3,988
* Excludes pension supplements in lieu of future pension accrual which are explained below.
The emoluments of the Chairman, who was also the highest paid director, were £954,000 (2011: £950,000), including Partnership bonus of £115,000 (2011: £142,000). The Chairman’s aggregate pension entitlement from the age of 60 accrued at the end of the year was £223,000 per annum (2011: £214,000 per annum). There was no increase in the accrued entitlement above consumer price inflation during the year.
The remuneration and benefits of five directors who are elected to the Board are excluded throughout this note on the basis that no part of their remuneration relates to their service as a member of the Board. Excluding pension fund contributions and pension supplements in lieu of future pension accrual, but including Partnership bonus, the emoluments of the other individual directors, excluding the Chairman, who served on the Board during any part of the year, were as follows:
Table showing Director's emoluments (continued)
2012 | 2011
£1 - £50,000 2 | 1
£50,001 - £100,000 1 | 1
£400,001 - £450,000 1 | 1
£450,001 - £500,000 1 | 1
£600,001 - £650,000 – | 1
£650,001 - £700,000 1 | 1
£700,001 - £750,000 1 | 1
£750,001 - £800,000 1 | –
Contracts of employment for the Chairman and five directors provide for a notice period of one year. Contracts for all other directors provide for between three and six months’ notice.
Excluding the five directors who are elected to the Board, six members of the Board qualify for the annual distribution of profit in Partnership bonus, paid at the same percentage of pay as for any Partner in employment on 31 January.
The Chairman and five members of the Board who served during the year were entitled to the use of a company car, or its cash equivalent. They also benefited from private medical insurance paid by the Partnership.
There were changes to the pensions arrangements for six members of the Board, including the Chairman, during the year ended 29 January 2011, as explained below.
Five directors belong to the group’s non-contributory pension scheme and also to the senior pension scheme, which provides additional benefits intended to produce a total pension worth two-thirds of pensionable pay on retirement at age 60, after at least 20 or 30 years’ service, depending on the level of benefit. From April 2010, these five directors became deferred members of both schemes and therefore accrue no further pension benefit in those schemes. One other director did not participate in the group’s non-contributory pension scheme, but had an unfunded defined contribution arrangement under which the group accrued contributions. During the year ended 29 January 2011, the contributions for the period to 31 March 2010 were £88,000.