Tesco 2003 Annual Report Download - page 18

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TABLE 2 Gains made on share options
Number of shares at exercise price (pence) Value realisable
Price at
exercise 2003 2002
72.3 72.3 70.0 81.0 90.3 Total (pence) £000 £000
Sir Terry Leahy 62,211 51,150 417,144 471,372 398,523 1,400,400 250.00 2,422 –
Mr D E Reid –––––––––
Mr R S Ager –––––––––
Mr P A Clarke ––––––––100
Mr J Gildersleeve –––––––––
Mr A T Higginson –––––––––
Mr T J R Mason ––––––––40
Mr D T Potts –––––––––
Date of grant 29.10.1995 27.05.1996 10.06.1997 12.08.1997 27.04.1998
The value realisable from shares acquired on exercise is the difference between the fair market value at exercise and the
exercise price of the options, although the shares may have been retained. All options were exercised on the same date
when the market share price was 250.00p. All of the options at 72.3p were exercised at 61.7p and 25% of the options
at 70.0p and 81.0p were exercised at 59.7p and 69.0p respectively, as targets related to growth in earnings per share in
accordance with ABI guidelines have been achieved.The market share price at 22 February 2003 was 168.00p.The share
price during the 52 weeks to 22 February 2003 ranged from 163.00p to 266.25p.
The performance criteria for share options set out on page 14 is audited information.
TABLE 3 Pension details of the Directors
Transfer Transfer
Increase Transfer value value Increase/
Total Increase in accrued value of total of total (decrease)
accrued in accrued pension of previous accrued accrued in transfer
Age at Years of pension at pension during the column at pension at pension at value less
22 February
company
22 February
during the year (net of
22 February 23 February 22 February
directors’
2003 service 2003 (a) year inflation) 2003 2002 2003 contributions
£000 £000 £000 £000 £000 £000 £000
Sir Terry Leahy (b) 47 24 383 52 46 367 3,208 2,554 (654)
Mr D E Reid (c) 56 18 371 44 39 1,271 4,701 5,273 572
Mr R S Ager 57 17 257 31 27 415 3,450 3,910 460
Mr P A Clarke 42 28 169 31 29 159 1,147 941 (206)
Mr J Gildersleeve 58 38 370 36 31 510 5,297 6,113 816
Mr A T Higginson (d) 45 5 87 23 22 139 595 545 (50)
Mr T J R Mason 45 21 197 27 24 149 1,578 1,204 (374)
Mr D T Potts 45 30 188 34 31 200 1,461 1,197 (264)
(a) The accrued pension is that which would be paid annually on retirement at 60, based on service to 22 February 2003.
(b) Sir Terry Leahy is entitled to retire at any age from 57 to 60 inclusive with an immediate pension of two-thirds of base salary.
Part of his pension may be provided on an unfunded basis within a separate unapproved arrangement.
(c) During the year, Mr D E Reid sacrificed £400,000 of a bonus payment in return for pension augmentation.
This augmentation allows Mr D E Reid to retire from age 581⁄2with an immediate pension of two-thirds of base salary.
(d) Part of Mr A T Higginson’s benefits, in respect of pensionable earnings in excess of the earnings limit imposed by the Finance Act 1989,
are provided on an unfunded basis within a separate unapproved arrangement.
All transfer values have been calculated in accordance with Actuarial Guidance Note GN11.
16 TESCO PLC
report of the directors on remuneration continued