Tesco 1998 Annual Report Download - page 14

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1 2
Table 3 Pension details of the directors
Lord MacLaurin (c)
Mr T P Leahy
Mr D E Reid
Mr R S Ager
Mr J Gildersleeve
Mr A T Higginson (d)
Mrs L James
Mr T J R Mason
Mr J M Wemms
Transfer
value of increase
during the year
£000
78
180
283
193
176
24
99
163
215
Increase in accrued
pension during
the year
(a) £000
5
19
21
14
12
3
8
18
14
Years of
service
38
19
13
12
33
0
13
16
26
Age at
28 February 1998
60
42
51
52
53
40
48
40
58
Accrued
total pension at
28 February 1998
(b)£000
498
166
186
143
234
3
87
93
230
a)The increase in accrued pension during the year excludes any increase for inflation.
b)The accrued pension is that which would be paid annually on retirement at 60 based on service to 28 February 1998.
c)Lord MacLaurin retired on 6 June 1997.
d)The figures for Mr A T Higginson relate to the period from 17 November 1997 when he was appointed a director. In his case not
all of the benefits shown above can be provided from the approved pension scheme; the balance is provided in the form of unapproved
benefits.
Report of the Remuneration Committee
c o n t i n u e d
Executive incentive scheme continued
The Committee sets performance targets annually for the
incentive scheme for each of the criteria noted above, confirms
achievement of performance and awards to be made under the
scheme and directs the general administration of the scheme.
The Executive Committee has adopted a policy of extending the
Group Board executive incentive scheme to a wider body of
senior executives within the Group. The scheme rules and awards
of this extension are administered on a consistent basis as
previously set out for the executive directors.
The holding period for both the long-term and short-term shares
may be extended to seven and five years respectively by the
scheme members. During this holding period, the shares held are
increased by 121⁄2% at the beginning of each year based on the
scheme shares held. This holding period may be extended only
subject to personal shareholding targets set by the Committee
being met by the scheme members and conditional upon
continuous employment with the company.
Share options
Executive directors are included in an approved executive share
option scheme (ESOS), and are eligible to join the employees’
savings-related share option scheme (SAYE)when they have
completed one year’s service.
Executive options granted since 1995 may be exercised only
subject to the achievement of performance criteria related to
growth in earnings per share, in accordance with ABI guidelines.
Pensions
Executive directors are members of the Tesco PLC Pension
Scheme which provides a pension of up to two-thirds of base
salary on retirement , normally at the age of 60, dependent upon
service. The scheme also provides for dependants’ pensions and
lump sums on death in service. The scheme is a defined benefit
pension scheme, which is approved by the Inland Revenue.