Tesco plc Annual Report and Financial Statements 2012

OVERVIEW
Aligning pay with performance
The following charts illustrate the remuneration received by Executive Directors over the last five years.
Richard Brasher
£4.0m
£3.5m
£3.0m
£2.5m
£2.0m
£1.5m
£1.0m
£0.5m
£0m
07/08
Andrew Higginson
£4.0m
£3.5m
£3.0m
£2.5m
£2.0m
£1.5m
£1.0m
£0.5m
£0m
07/08
Laurie McIlwee
£3.0m
£2.5m
£2.0m
£1.5m
£1.0m
£0.5m
£0m
08/09
08/09
09/10
09/10
09/10
10/11
10/11
10/11
Laurie McIIwee was promoted to the Board during 2008/09 and therefore the first
full year is shown above
David Potts
£4.0m
£3.5m
£3.0m
£2.5m
£2.0m
£1.5m
£1.0m
£0.5m
£0m
07/08
08/09
09/10
10/11
11/12
11/12
11/12
11/12
David Potts stepped down from the Board on 7 December 2011. The figures for 2011/12
are to 7 December 2011.
Gains on share options (gain at vesting date)
PSP (value on vesting date)
Bonus – Deferred shares awarded
STRATEGIC REVIEW PERFORMANCE REVIEW GOVERNANCE FINANCIAL STATEMENTS
Board of Directors Principal risks and uncertainties General information Corporate governance
Directors’ remuneration report
Bonus – Cash
Allowance/benefits
Salary
Philip Clarke
£4.0m
£3.5m
£3.0m
£2.5m
£2.0m
£1.5m
£1.0m
£0.5m
£0m
£5.0m
£4.5m
£4.0m
£3.5m
£3.0m
£2.5m
£2.0m
£1.5m
£1.0m
£0.5m
£0m
07/08
Tim Mason
£3.0m
£2.5m
£2.0m
£1.5m
£1.0m
£0.5m
£0m
07/08
Lucy Neville-Rolfe
07/08
08/09
08/09
08/09
09/10
09/10
09/10
10/11
10/11
10/11
11/12
11/12
11/12
Notes
1 Salary – The base salary paid in the year, as reported in the emoluments table for the
relevant financial year.
2 Bonus (cash) – The cash bonus in respect of annual performance in that financial year,
as reported in the emoluments table for the relevant financial year.
3 Bonus (deferred shares) – The value of deferred bonus shares on award, as reported
in the emoluments table for the relevant financial year. These deferred shares vest three
years after award and are not subject to further performance conditions.
4 PSP – The value of PSP awards that vested in respect of the three-year performance
period ending in the relevant financial year. All awards valued based on the share price at
the date of vesting, other than for 2011/12 award where the award is valued at the share
price on 25 February 2012.
5 2007/08 and 2008/09 PSP – The PSP awards that vested in this year (other than to
Lucy Neville-Rolfe and Laurie McIlwee) were subject to an additional one-year holding
period and as such were not released until the following financial year.
6 PSP awards for Lucy Neville-Rolfe and Laurie McIlwee – The PSP awards granted
to Lucy Neville-Rolfe prior to 2007 and to Laurie McIlwee prior to 2009 were before they
joined the Board and therefore were granted under the senior management performance
share plan.
7 Share options – The ‘gain’ in relation to share options that vested in respect of the
performance period ending in the relevant financial year. Gain calculated based on the
share price at the date of vesting less the exercise price, other than for 2011/12 award
where the gain is calculated based on the share price on 25 February 2012.
8 Allowance�������������������������������������������������������������������������
to cover expatriate costs previously paid by the Company (see Table 1 – Directors’
emoluments on page 80 for further details).
Tesco PLC Annual Report and Financial Statements 2012 75