Tesco 2009 Annual Report Download - page 58

56 DIRECTORS’ REMUNERATION REPORT
Tesco PLC Annual Report and Financial Statements 2009
Directors’ remuneration report continued
Table 2 Directors’ pension details
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 HMRC.
(a)
Increase in Transfer Transfer
accrued Transfer value of value of Transfer
Total Increase pension value of (a) at total accrued total accrued value of Increase
accrued in accrued during 28 February pension at pension at total accrued in transfer
pension at pension the year 2009 (less 23 February 23 February pension at value (less
Age at Years of 28 February during (net of Director’s 2008 2008 28 February Director’s
28 February Company 20091, 2 the year inflation) contributions) (old basis)3 (new basis)3 2009 contributions)
2009 service £000 £000 £000 £000 £000 £000 £000 £000
Richard Brasher 47 22 332 39 24 218 2,767 3,075 3,030 (45)
Philip Clarke 48 34 363 32 16 153 3,343 3,695 3,530 (165)
Andrew Higginson 51 11 292 40 27 313 2,882 3,140 3,354 214
Sir Terry Leahy4 53 30 775 70 34 835 10,141 10,894 12,130 1,236
Tim Mason 51 27 395 34 17 188 4,123 4,490 4,493 3
Laurie McIIwee5 46 8 105 33 33 292 n/a 620 918 298
Lucy Neville-Rolfe 56 11 205 39 30 468 2,444 2,597 3,216 619
David Potts 51 36 399 35 17 196 4,285 4,664 4,705 41
1 The accrued pension is that which would be paid annually on retirement at 60 based on service to 28 February 2009.
2 Some of the Executive Directors’ benefits are payable from an unapproved pension arrangement. This is secured by a fixed and floating charge on a cash deposit.
3 The basis used for calculating transfer values was revised during the year because changes in financial conditions meant that the previous basis for calculating transfer values, used since
2007, no longer produced reasonable values. Transfer values at 23 February 2008 have been restated using the new method of comparative purposes.
4 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.
5 Laurie McIIwee was promoted to the Board on 27 January 2009. The increase in accrued pension shown is based on the increase since his date of promotion. Similarly, the transfer value
as at 23 February 2008 is based on the value of his pension as at date of promotion.
Table 3 Gains made on executive share options
Executive share option scheme and discretionary share option plan
Value realisable
1
Number of Option Market
Date Date Date of options price price at 2008/9 2007/8
of grant exercisable exercise exercised (pence) exercise Total £000 £000
Richard Brasher – – – – – – – – –
Philip Clarke – – – – – – – – 935
Andrew Higginson – – – – – – – – –
Sir Terry Leahy 30.09.98 30.09.01 30.09.08 126,832 164.00 369.20 126,832 260 –
Tim Mason – – – – – – – – –
Laurie McIlwee 2 – – – – – – – – –
Lucy Neville-Rolfe – – – – – – – – 274
David Potts – – – – – – – – 956
Total 126,832 126,832 260 2,165
1 The value realisable from shares acquired on exercise is the difference between the market value at exercise and the exercise price of the option, although the shares may have been retained.
2 Laurie McIlwee was appointed on 27 January 2009. Figures shown in this table are from the date of his appointment.
3 Gains made on Save As You Earn share options are not included above. These are detailed in table 5.
4 Gains made on nil cost options awarded under the Performance Share Plan and Executive Incentive Plan are not included above. These are detailed in table 6 and table 9.
Table 4 Share options held by Directors and not exercised at 28 February 2009
Executive share option schemes (1994) and (1996) and discretionary share option plan (2004)
Options as at Options Options Options as at Exercise Date from
23 February granted exercised 28 February price which Expiry
Date of grant 2008 in year1 in year3 2009 (pence) exercisable date
Richard Brasher 26.06.2000 106,613 – – 106,613 205.00 26.06.2003 26.06.2010
26.04.2001 101,215 – – 101,215 247.00 26.04.2004 26.04.2011
15.04.2002 100,386 – – 100,386 259.00 15.04.2005 15.04.2012
14.04.2003 151,900 – – 151,900 197.50 14.04.2006 14.04.2013
30.04.2004 296,150 – – 296,150 253.25 30.04.2007 30.04.2014
22.04.2005 255,795 – – 255,795 312.75 22.04.2008 22.04.2015
08.05.2006 345,261 – – 345,261 318.60 08.05.2009 08.05.2016
08.05.2007 278,627 – – 278,627 473.75 08.05.2010 08.05.2017
12.05.2008 – 353,114 – 353,114 427.00 12.05.2011 12.05.2018
Total 1,635,947 353,114 – 1,989,061