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115
Tesco PLC Annual Report and Financial Statements 2013
OVERVIEW BUSINESS REVIEW PERFORMANCE REVIEW GOVERNANCE FINANCIAL STATEMENTS
Note 25 Share-based payments continued
ix) The Discretionary Share Option Plan (2004) was adopted on 5 July 2004. This scheme permits the grant of approved, unapproved and
international options in respect of ordinary shares to selected executives. Options are normally exercisable between three and ten years from
the date of grant at a price not less than the middle-market quotation or average middle-market quotations of an ordinary share for the dealing
day or three dealing days preceding the date of grant. The exercise of options will normally be conditional upon the achievement of a specified
performance target related to the annual percentage growth in earnings per share over a three-year period. There were no discounted options
granted under this scheme.
x) The Group New Business Incentive Plan (2007) was adopted on 29 June 2007. This scheme permits the grant of options in respect of ordinary
shares to selected executives. Options will normally vest in four tranches: four, five, six and seven years after the date of grant and will be exercisable
for up to two years from the vesting dates for nil consideration. The exercise of options will normally be conditional upon the achievement of
specified performance targets related to the return on capital employed over the seven-year plan.
The following tables reconcile the number of share options outstanding and the weighted average exercise price (‘WAEP’):
For the year ended 23 February 2013
Savings-related
Share Option Scheme
Irish savings-related
Share Option Scheme
Approved
Share Option Scheme
Unapproved
Share Option Scheme
International executive
Share Option scheme
Nil cost
share option schemes
Options WAEP Options WAEP Options WAEP Options WAEP Options WAEP Options WAEP
Outstanding at
25 February
2012 131,921,033 350.28 4,975,203 352.95 13,668,564 395.47 87,418,835 377.8 0 59,751,420 385.37 17, 801,914 0.00
Granted 32,771,389 282.00 1,407,939 282.00 – – – – – – 7, 369,204 0.00
Forfeited (25,049,015) 333.25 (1,055,775) 336.01 (604,143) 410.43 (3,130,086) 401.30 (4,379,756) 397.07 (3,064,780) 0.00
Exercised (12,430,856) 321.54 (440,533) 323.97 (472,092) 281.87 (3,849,729) 257.90 (1,706,557) 284.22 (2,327,513) 0.00
Outstanding at
23 February
2013 127,212,551 338.85 4,886,834 338.78 12,592,329 399.01 80,439,020 382.62 53,665,107 387.64 19,778,825 0.00
Exercisable as at
23 February
2013 16,192,212 381.09 709,010 360.40 9,319,436 391.70 61,754,447 371.37 39,218,022 375.74 5,630,056 0.00
Exercise price
range (pence)
328.00
to
410.00
328.00
to
410.00
197.50
to
473.75
197.50
to
473.75
197.50
to
473.75 0.00
Weighted average
remaining
contractual
life (years) 0.43 0.43 4.59 4.71 4.90 5.24
For the year ended 25 February 2012
Savings-related
Share Option Scheme
Irish savings-related
Share Option Scheme
Approved
Share Option Scheme
Unapproved
Share Option Scheme
International Executive
Share Option Scheme
Nil cost
share option schemes
Options WAEP Options WAEP Options WAEP Options WAEP Options WAEP Options WAEP
Outstanding at
26 February
2011 141,225,710 345.41 5,720,602 348.84 14,8 47, 597 389.21 92,512,818 374.29 65,066,054 382.06 12,399,127 0.00
Granted 28,566,015 364.00 1,133,139 364.00 7,44 8 402.75 2,555 402.75 40,000 402.75 6, 513,912 0.00
Forfeited (21,030,145) 376.08 (1,255,918) 367.98 (439,466) 385.94 (1,897,884) 384.93 (3,314,141) 380.28 (603,508) 0.00
Exercised (16,840,547) 300.49 (622,620) 304.96 ( 747,015) 276.82 ( 3,198,654) 272.20 (2,040,493) 288.26 (507,617) 0.00
Outstanding at
25 February
2012 131,921,033 350.28 4,975,203 352.95 13,668,564 395.47 87,418 ,835 377.80 59,751,420 385.37 17,801,914 0.00
Exercisable as at
25 February
2012 16,757,641 309.18 557, 813 309.91 7,887,688 402.06 4 4,131,269 380.11 27,530,779 393.35 5,216,671*0.00
Exercise price
range (pence)
248.00
to
410.00
307.0 0
to
410.00
197.50
to
473.75
197.50
to
473.75
197.50
to
473.75 0.00
Weighted average
remaining
contractual
life (years) 0.43 0.43 4.94 4.65 5.01 6.17
* Previously, 2012 included options granted within the year.
Share options were exercised on a regular basis throughout the financial year. The average share price during the financial year ended 23 February
2013 was 328.39p (2012: 385.43p).