John Lewis Partnership plc Annual Report and Accounts 2014
77
What are the Executive Directors, the Non-Executive Directors and
Partners’ Counsellor paid? (audited) The table below shows the number of Directors and their total remuneration for the year, including both Partnership Bonus and the pension supplements described below, for all Directors except the Elected Directors:
£1 – £50,000
£50,001 – £100,000 £300,001 – £350,000 £700,001 – £750,000 £1,050,001 – £1,100,000 £1,100,001 – £1,150,000 £1,200,001 – £1,250,000 £1,450,001 – £1,500,000 £1,500,001 – £1,550,000
2014 1 2 1 2 2 – 1 – 1
2013 1 3 1 3 – 1 1 1 –
The Chairman, Executive Directors, Elected Directors and Partners’ Counsellor are also entitled to the same benefits as all other Partners, including shopping discount, long leave and other subsidies.
How do we compensate the Elected and Non-Executive Directors for their contributions
to the Board? Elected Directors are not paid for their service on the Partnership Board, as their pay is determined by their respective roles and responsibilities in the Partnership. Their pay is therefore not considered by the Committee or the Partnership Board.
Non-Executive Directors receive fixed annual fees, which are reviewed periodically and set at levels that reflect each Director’s time commitment and responsibilities. Non- Executive Directors’ fees are determined by the Elected Directors on behalf of the Committee. Non-Executive Directors are not entitled to Partnership Bonus, or to any other salary or benefits from the Partnership.
Committee evaluation During the year, the Committee, facilitated by Board Intelligence, undertook an externally facilitated evaluation of its own effectiveness. The key recommendations of the evaluation were to review the role of Committee and the role of management that supports and provides assurance to the Committee so that they are clearly defined and reflected within the Committee Terms of Reference.
As a result of its work during the year, the Committee has concluded that it has acted in accordance with its terms of reference and operating effectively.
What about external
appointments? An Executive Director with an external appointment may not retain any earnings from such appointment unless it dates from before he or she joined the Partnership.
The small print This report forms part of the Directors’ Report and has been prepared in accordance with the disclosure requirements applying to the Partnership, which are set out in Schedule 5 of the Large and Medium-sized Companies and Groups (Accounts and Report) Regulations 2008 (‘the Regulations’).
Since the Partnership is not quoted, and has no share-based incentive schemes or other long-term incentives, the Partnership Board has decided not to adopt the full disclosure provisions applicable to quoted companies. However, in the interests of transparency, certain disclosures within this Report go beyond the requirements of Schedule 5 of the Regulations.
The Directors’ earnings section on pages 76 and 77 is cross-referenced from note 9 of the financial statements and forms part of the audited financial statements.
On behalf of the Remuneration Committee
Comply or explain?
REMUNERATION FOR NON- EXECUTIVE DIRECTORS
Code Provision D.2.3 states that the board should determine the remuneration of the Non-Executive Directors. Where permitted by the Articles of Association, the board may, however, delegate this responsibility to a committee that might include the chief executive. The provision supports the Code principle that care should be taken to recognise and avoid conflicts of interest.
The Partnership does not comply with the Code as the Partnership Board does not determine the remuneration for Non- Executive Directors. Instead, this is the responsibility of the Elected Directors, who receive a recommendation from the Director of Personnel, while also considering the Chairman’s views and relevant market data provided by the independent external remuneration consultant.
Steve Gardiner
Steve Gardiner and Kim Lowe, the two Elected Directors who served on the Remuneration Committee throughout the year, are signing the Remuneration Report in place of David Barclay who served as Chairman of the Remuneration Committee during the year but who retired from the Partnership Board after the year end.
Kim Lowe
Elected Directors and members of the Remuneration Committee 10 April 2014
THE JOHN LEWIS PARTNERSHIP
OUR PERFORMANCE
GOVERNANCE
FINANCIAL STATEMENTS
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