Tesco 2015 Annual Report Download - page 54

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Underlying profit before tax – continuing
operations (£million)
5,000
4,000
3,000
2,000
1,000
0
14/1513/1412/1311 /1210/11
Return on capital employed (‘ROCE’)
− continuing operations (%)
15.0
12.0
9.0
6.0
3.0
0.0
14/1513/1412/1311/1210/11
Underlying diluted earnings per share –
continuing operations (p)
50
40
30
20
10
0
14/1513/1412/1311/1210 /11
Total shareholder return
Value of £100 invested 2 March 2009
260
240
220
200
180
160
140
120
100
80
60
FTSE 100
Te sco
Feb 15Feb 14Feb 13Feb 12Feb 11Feb 10Feb 09
Pension
Dave Lewis and Alan Stewart receive a cash allowance in lieu of pension.
For Philip Clarke and Laurie McIlwee, pension is calculated as the difference between the end-of-year defined benefit accrued pension and the
beginning-of-year accrued pension increased by the September Consumer Price Index in the preceding tax year, multiplied by a factor of 20.
More information on pension arrangements is set out on pages 55 and 56.
Current Directors Former Directors
Dave Lewis Alan Stewart Philip Clarke Laurie McIlwee
Annual cash allowance in lieu
of pension (% of salary)
25% 25% n/a n/a
Annual cash allowance in lieu
of pension (£’000)
313 188 n/a n/a
Start/end date 1 September 2014 23 September 2014 1 September 2014 4 April 2014
Cash in lieu of pension received in year (£’000) 143 74 n/a n/a
Value of increase in defined benefit accrued pension
(£’000)
n/a n/a 160 223
Buyouts
Awards forfeited on leaving a previous employer are bought out, taking into account the expected level of performance where appropriate.
Awards vest over an equivalent period to awards forfeited. These awards are not subject to future performance conditions. Further details
are set out on page 55.
Current Directors
Dave Lewis Alan Stewart
Start date 1 September 2014 23 September 2014
Value of share awards forfeited (£’000) 3,819 1,691
Tesco share price over the four dealing days after joining (£) 2.3036 1.9169
Number of Tesco shares awarded 1,657,9 89 881,956
Award date 24 October 2014 24 October 2014
Share price on date of award (£) 1.6875 1.6875
Value at date of award (£’000) 2,798 1,488
Cash award in relation to 2014 bonus (pro-rata) (£’000) 525 –
Estimated award in relation to 2014/15 bonus (pro-rata) (£’000)*–400
Total value of buyout (£’000) 3,323 1,888
* Alan Stewart will receive a payment in respect of his 2014/15 bonus forfeited based on the payment he would have received had he remained in post (pro-rated for
time). The actual amount is currently unknown and the estimated amount shown above will be adjusted in next year’s Directors’ Remuneration Report to show the
actual value delivered.
Aligning pay with performance
The following charts illustrate performance
at Tesco against key performance indicators.
See the five year record on page 156 for
more information.
The FTSE 100 index has been selected to
compare Tesco’s TSR against as it is a broad
market index of which Tesco is a constituent.
52 Tesco PLC Annual Report and Financial Statements 2015
Directors’ remuneration report continued
Annual remuneration report