Tesco 2004 Annual Report Download - page 49

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TESCO PLC 47
NOTE 26 Share options continued
(iv) The executive share option scheme (1994) was adopted on 17 October 1994. The principal difference between this scheme
and the previous scheme is that the exercise of options will normally be conditional upon the achievement of a speciÞed
performance target related to the annual percentage growth in earnings per share over any three-year period. There will be
no discounted options granted under this scheme.
(v) The unapproved executive share option scheme (1996) was adopted on 7 June 1996. This scheme was introduced following
legislative changes which limited the number of options which could be granted under the previous scheme. As with the previous
scheme, the exercise of options will normally be conditional upon the achievement of a speciÞed performance target related
to the annual percentage growth in earnings per share over any three-year period. There will be no discounted options granted
under this scheme.
(vi) The international executive share option scheme (1994) was adopted on 20 May 1994. This scheme permits the grant to
selected non-UK executives of options to acquire ordinary shares on substantially the same basis as their UK counterparts.
Options are normally exercisable between three and ten years from their grant at a price of not less than the average of
the middle-market quotations for the ordinary shares for the three dealing days immediately preceding their grant and will
normally be conditional on the achievement of a speciÞed performance target determined by the Remuneration Committee
when the options are granted. There will be no discounted options granted under this scheme.
Tesco PLC has taken advantage of the exemptions applicable to Inland Revenue-approved SAYE share option schemes and equivalent
overseas schemes under Urgent Issues Task Force Abstract 17 (revised 2000), Employee Share Schemes. In schemes where options
are granted at nil discount, there is no charge to the proÞt and loss account.
The company has granted outstanding options in connection with the six schemes as follows:
Savings-related share option scheme (1981) Number of Shares
executives and under option Subscription
Date of grant employees 28 Feb 2004 price (pence)
29 October 1998 1,643 3,079,095 136.0
28 October 1999 13,293 17,808,770 151.0
26 October 2000 21,708 21,024,493 198.0
8 November 2001 51,255 38,875,339 198.0
8 November 2002 57,377 56,171,997 159.0
6 November 2003 63,725 50,090,878 195.0
Irish savings-related share option scheme (2000) Number of Shares
executives and under option Subscription
Date of grant employees 28 Feb 2004 price (pence)
2 June 2000 777 1,078,129 163.0
26 October 2000 364 371,529 198.0
8 November 2001 627 533,875 198.0
8 November 2002 1,125 1,147,898 159.0
6 November 2003 1,489 1,313,408 195.0