Tesco 2013 Annual Report Download - page 58

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54 Tesco PLC Annual Report and Financial Statements 2013
Directors’ remuneration report continued
Performance measures and payout
Maximum opportunity 2012/13 Payout
Return on capital employed – Group
• Maximum vesting for Group ROCE of
13.6% with threshold vesting (25%) for
Group ROCE of 12.5%.
• 75% based on performance against
target with 25% based on the Committee
assessment of the quality of ROCE
performance.
• Granted in 2010/11.
• Performance period ended 2012/13.
• Maximum award
of 100% of salary.
• Group reported ROCE for
2012/13 was 12.7%. This is
measured on a continuing basis
and excludes the US operations
and one-off items in respect
of the UK property write-down,
goodwill impairments in Central
Europe and the increased
provision for PPI at Tesco Bank.
The Remuneration Committee
decided that underlying
performance for incentive
purposes should include
these items and therefore
adjusted ROCE performance
down. This resulted in Group
ROCE performance being
below the threshold level
of performance required and
therefore 0% of the maximum
the award will vest.
25% vesting
Full vesting
Group ROCE
12.0
12.5
13.0
13.5
14.0
(%)
Group ROCE performance was below
threshold and therefore PSP
awards will not vest
Return on capital employed – International
• Maximum vesting for International
ROCE of 7.5% with threshold vesting
for International ROCE of 6%.
• 75% based on performance against
target with 25% based on the Committee
assessment of the quality of ROCE
performance.
• Granted in 2010/11.
• Performance period ended 2012/13.
• Maximum award
of 50% of salary.
• International ROCE for 2012/13
was below the level required for
threshold levels of vesting and
therefore 0% of the award
will vest.
25% vesting
Full vesting
International ROCE
5.0
5.5
6.0
6.5
7.0
7.5
8.0
(%)
International ROCE performance was
below threshold and therefore PSP
awards will not vest