REG - Marks & Spencer Grp - 2020 PSP Award Targets

Marks and SpencerAnnouncement

21/12/2020 09:00

RNS Number : 2480J
  
Marks & Spencer Group PLC
  
21 December 2020
  
 

 
Marks and Spencer Group PLC 
2020 PSP AWARD TARGETS 
 
Marks and Spencer Group plc ("M&S") is providing this notification following the grant of conditional share awards under the Company's Performance Share Plan on 6 July 2020 ("2020 PSP Award"). The PSP is designed to deliver sustainable value creation and encourage long-term shareholding and alignment with shareholders' interests.
As stated in the RNS announcement on 6 July 2020 and in the Company's 2020 Annual report, due to the unprecedented trading and financial environment target setting for the 2020 PSP Awards had to be delayed until appropriately stretching but realistic goals could be set. Targets for the awards were to be announced no later than 31 December 2020.
These awards will vest in 2023 to the extent the performance conditions are met. They must then be held for a further two years, not being released to the participants until 2025. Further, malus, clawback, and shareholding guidelines apply to these awards.
As communicated in the 2020 Annual Report, and in recognition of the impact that Covid-19 had on the profitability of the Group. The 2020 PSP Award grant was reduced from 250% of salary to 175% to mitigate the risk of windfall gains. 
Additionally, the Company is not operating a bonus scheme for Executive Directors in 2020/2021 and no bonus payments were made in respect of 2019/2020. 
Having reviewed M&S's long-term business plan in view of the Covid-19 impact over the medium- and long-term and following consultation with stakeholders, the targets for the 2020 PSP Award have been confirmed as follows:



Measure


Weighting


Details




Threshold


Maximum




Adjusted EPS in final year of 3-yr performance period


30%


13p


22p




ROCE in final year of 3-yr performance period


30%


9%


12%




Relative TSR


20%


Median


Upper Quartile




Strategic measures


20%


M&S.com growth
Food like-for-like sales
Store staff cost to sales ratio



 
For performance between Threshold and Maximum, awards vest on a straight-line basis.
The specific targets for the strategic measures are deemed too commercially sensitive to disclose at this time. These will be disclosed, where possible, on vesting.
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For more information, please call:
M&S Corporate PR                          0208 718 1919     
 

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