Tesco 2010 Annual Report Download - page 60

Directors’ remuneration report continued
Table 1 Directors’ emoluments
Fixed emoluments Performance-related emoluments
Short-term
Short-term deferred Total Total
Salary Allowances Benefits2 cash shares Long-term3 2009/10 2008/9
£000 £000 £000 £000 £000 £000 £000 £000
Executive Directors
Richard Brasher 805 – 63 771 763 – 2,402 2,267
Philip Clarke 805 – 38 771 763 324 2,701 2,720
Andrew Higginson 805 – 56 771 763 329 2,724 2,754
Sir Terry Leahy 1,398 – 115 1,340 1,784 583 5,220 5,102
Tim Mason – base salary1 816 305 343 914 909 329 3,616 3,225
Tim Mason – supplement1 200 – – 225 224 – 649 560
Tim Mason – total 1,016 305 343 1,139 1,133 329 4,265 3,785
Laurie McIlwee 588 – 50 579 572 – 1,789 91
Lucy Neville-Rolfe 589 – 69 579 572 – 1,809 1,606
David Potts 805 – 45 771 763 324 2,708 2,719
Non-Executive Directors
Charles Allen 95 – – – – – 95 91
Patrick Cescau 89 – – – – – 89 5
Rodney Chase 135 – – – – – 135 129
Karen Cook 77 – – – – – 77 73
Harald Einsmann 77 – – – – – 77 73
Ken Hanna4 79 – – – – – 79 –
Ken Hydon 95 – – – – – 95 91
David Reid (Chairman) 610 – 67 – – – 677 657
Jacqueline Tammenoms Bakker 65 – – – – – 65 9
Total 8,133 305 846 6,721 7,113 1,889 25,007 22,172
1 Tim Mason’s salary is made up of a base salary and a non-pensionable salary supplement (shown separately). Allowances are made up of compensation payments for additional tax due
on equity awards made prior to his move to the US. Tim Mason’s benefits are made up of car, travel, medical, tax related costs and services and free shares awarded under the all employee
Share Incentive Plan.
2 With the exception of Tim Mason, benefits are made up of car benefits, chauffeurs, disability and health insurance, staff discount, gym/leisure club membership and free shares awarded
under the all employee Share Incentive Plan.
3 The long-term bonus figures shown in table 1 relate to the additional 12.5% enhancements allocated in April 2009 and February 2010 on long-term awards under the old bonus scheme.
The long-term bonuses awarded on 15 October 2009 under the Performance Share Plan were awarded in the form of nil cost options with the exception of Tim Mason who received an
unfunded promise to deliver shares. Details of these awards are shown in table 6.
4 Ken Hanna was apppointed during the year. The figure in table 1 is from his date of appointment.
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 27 February pension at pension at total accrued in transfer
pension at pension the year 2010 (less 28 February 28 February pension at value (less
Age at Years of 27 February during (net of Director’s 2009 2009 27 February Director’s
27 February Company 20101, 2 the year inflation)5 contributions) (old basis)3 (new basis)3 2010 contributions)
2010 service £000 £000 £000 £000 £000 £000 £000 £000
Richard Brasher 48 23 359 27 27 366 3,030 4,133 4,842 709
Philip Clarke 49 35 390 27 27 384 3,530 4,793 5,579 786
Andrew Higginson 52 12 329 37 37 581 3,354 4,265 5,202 937
Sir Terry Leahy4 53 31 832 57 57 1,014 12,130 13,767 15,924 2,157
Tim Mason 52 28 424 29 29 450 4,493 5,734 6,662 928
Laurie Mcllwee 47 9 178 73 73 944 918 1,257 2,306 1,049
Lucy Neville-Rolfe 57 13 244 39 39 722 3,216 3,442 4,452 1,010
David Potts 52 37 428 29 29 465 4,705 5,932 6,891 959
1 The accrued pension is that which would be paid annually on retirement at 60 based on service to 27 February 2010.
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 2008,
no longer produced reasonable values. Transfer values at 28 February 2009 have been restated using the new basis for 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 Inflation over the year has been allowed for using the September 2009 statutory revaluation order.
Tables 1-11 are audited information
58 Tesco PLC Annual Report and Financial Statements 2010