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TESCO PLC ANNUAL REPORT 1999 11
Pension fund
The assets of the pension funds, established for the benefit of
the Group’s employees, are held separately from those of the
Group. Both the Tesco PLC Pension Scheme and the Tesco
PLC Money Purchase Pension Scheme are managed by a trustee
company. Its board comprises three executive directors, two
senior managers and four members appointed from staff and
pensioners. Management of the assets of the Tesco PLC Pension
Scheme is delegated to a number of independent fund
managers. Contributions to the Tesco PLC Money Purchase
Pension Scheme are paid into insurance policies administered
by the Equitable Life Assurance Society. There is no self-
investment in Tesco shares or property occupied by the Tesco
Group. Details of pension commitments are set out in note 26
to the financial statements on page 37.
Statement of compliance with the Code Provisions in the
Combined Code
Throughout the year ended 27 February 1999, the company
has been in compliance with all the Code Provisions set out in
Section 1 of the Combined Code on Corporate Governance,
except as detailed below.
Following the issuance of the Combined Code, the company
resolved in September 1998 that Mr G F Pimlott held the
position of senior independent non-executive director with
effect from 19 October 1998, as in accordance with
Code provision A.2.1.
With regard to Code provision B.1.7 on the length of directors’
service agreements, the Remuneration Committee considers
that the current length of two years is both appropriate and
necessary although it reviews the matter every year.
With regard to Code provision C.2.1, the company always
counts proxy votes but has not hitherto announced the proxy
votes lodged on each resolution although the company will
adopt this procedure with effect from the Annual General
Meeting on 4 June 1999.
Board Committee membership Nominations Committee Remuneration Committee Audit Committee
Independent directors
Mr J A Gardiner * * *
Mr G F Pimlott * * *
Mr J W Melbourn * * *
Baroness O’Cathain * *
Mr C L Allen (a) **
Dr H Einsmann (b)
Executive directors
Mr T P Leahy *
a) Appointed to the Board on 19 February 1999
b) Appointed to the Board on 1 April 1999