John Lewis Partnership plc annual report and accounts 2013


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.


Non-executive directors receive fixed annual fees, which are reviewed periodically and set at levels which 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 emoluments or benefits from the Partnership.


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.


Highest paid director


The total emoluments for the year ended 26 January 2013 and 28 January 2012 of the Chairman, who was also the highest paid director, were £1,478,000 (2012: £1,447,000), comprising pay of £825,000 (2012: £821,000), Partnership Bonus of £140,000 (2012: £115,000), pension supplement in lieu of further defined pension accrual of £495,000 (2012: £493,000) and benefits with a cash value of £18,000 (2012: £18,000).


Total emoluments paid to the Chairman, executive directors, Partners’ Counsellor and non-executive directors, excluding elected directors, were £6,590,000 (2012: £6,258,000).


Pension arrangements During the year, the Chairman, executive directors and Partners’ Counsellor each received a monthly pension supplement in lieu of further defined benefit pension accrual for current service and, for part of the year, one director accrued further defined benefit pension. These supplements are cash payments which are broadly equivalent in value to the defined benefit pension that the individual would previously have accrued in the Partnership’s pension schemes.


The pension arrangements for the Chairman, executive directors and Partners’ Counsellor will be reviewed as part of the broader ongoing review of the pension scheme.


During the year ended 26 January 2013, the total pension supplement paid to the Chairman, executive directors and Partners’ Counsellor was £2,066,000 (2012: £2,042,000).


The Chairman, executive directors and Partners’ Counsellor have all ceased to accrue further pension benefits in the Partnership’s pension schemes including the senior pension scheme. Their accrued pensions increase in line with either price inflation or future pay increases, depending on their individual arrangements. Where there are any accrued defined benefit pensions remaining on an unfunded basis, the Partnership has made provision for the associated liability.


The aggregate annual defined benefit pension entitlement from the age of 60, accrued at the end of the year, for the Chairman, executive directors and Partners’ Counsellor, who served on the Partnership Board during any part of the year, were as follows:






2013 2012


£50,001 - £100,000 1 -


£100,001 - £150,000 2 2


£150,001 - £200,000 1 1


£200,001 - £250,000 2 2


Total 6 5


 


For the Chairman, executive directors and Partners’ Counsellor who served on the Partnership Board during any part of the year, the aggregate defined benefit pension entitlement accrued at the end of the year was £930,000 per annum for six individuals (2012: £851,000 for five individuals). In addition, most of the directors are entitled to temporary pensions payable from age 60 until their State pension starts. The aggregate entitlement to temporary pensions was £34,000 per annum for four individuals (2012: £22,000 for three individuals). For those directors where there was an increase, the transfer value of the aggregate increase in accrued pension entitlement above consumer price inflation during the year was £135,000, including temporary pensions.


The Chairman’s aggregate defined benefit pension entitlement from the age of 60 accrued at the end of the year was £224,000 per annum (2012: £223,000 per annum). There was no increase in the accrued entitlement above consumer price inflation during the year.


 


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