Tesco 2004 Annual Report Download - page 20

18 TESCO PLC
REPORT OF THE DIRECTORS ON REMUNERATION CONTINUED
TABLE 2 Gains made on share options
Number of shares at exercise price (pence) Value realisable
Price at
exercise 2004 2003
70.0 98.3 151.7 176.7 178.0 205.0 Total (pence) £000 £000
Sir Terry Leahy  523,728 523,728 214.75 610 2,422
Mr D E Reid 11,427 223,728 601,305   836,460 241.30 879 
Mr R S Ager   
Mr P A Clarke 
Mr J Gildersleeve  122,034 122,034 214.75 142 
Mr A T Higginson   
Mr T J R Mason*   198,669 18,000 15,000 9,888 241,557 244.00 209 
Mr D T Potts   
Date of grant 10.06.1997 3..07.1999 07.10.2000 21.05.2001 28.01.2002 26.06.2003
* Includes Mrs F M Mason
The value realisable from shares acquired on exercise is the difference between the fair market value at exercise and the exercise
price of the options, although the shares may have been retained. Where individual Directors exercised options on different dates,
the price at exercise shown represents an average of the prices on these dates weighted to the number of options exercised.
In the case of Mr D E Reid, all of the options at 70.0p were exercised at 59.7p as targets related to growth in earnings per
share in accordance with ABI guidelines, have been achieved. The share price at 28 February 2004 was 257.5p. The share price
during the 53 weeks to 28 February 2004 ranged from 159.0p to 262.0p.
The performance criteria for share options set out on page 16 is audited information.
TABLE 3 Pension details of the Directors
Transfer Transfer
Increase Transfer value value
Total Increase in accrued value of total of total Increase
accrued in accrued pension of previous accrued accrued in transfer
Age at Years of pension at pension during the column at pension at pension at value less
28 February company 28 February during the year (net of 28 February 22 February 28 February Directors
2004 service 2004(a) year inßation) 2004 2003 2004 contributions
£000 £000 £000 £000 £000 £000 £000
Sir Terry Leahy (b) 48 25 433 50 39 471 2,554 3,801 1,247
Mr D E Reid (c) 57 19 409 38 27 1,531 5,273 8,010 2,737
Mr R S Ager (e) 58 18 287 30 23 390 3,910 4,844 934
Mr P A Clarke 43 29 200 31 26 191 941 1,447 506
Mr J Gildersleeve (e) 59 39 404 34 23 423 6,113 7,273 1,160
Mr A T Higginson (d) 46 6 112 25 22 181 545 908 363
Mr T J R Mason 46 22 223 26 20 163 1,204 1,802 598
Mr D T Potts 46 31 222 34 29 238 1,197 1,833 636
(a) The accrued pension is that which would be paid annually on retirement at 60, based on service to 28 February 2004.
(b) 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.
Part of his pension may be provided on an unfunded basis within a separate unapproved arrangement.
(c) Mr D E Reid retired early on 31 December 2003. The accrued total pension shown is his pension immediately after retirement.
In addition, Mr D E Reid sacriÞced £430,000 of a bonus payment in return for pension augmentation.
This pension augmentation has been taken into account for the accrued pension and transfer values at 28 February 2004.
(d) Part of Mr A T Higginsons beneÞts, in respect of pensionable earnings in excess of the earnings limit imposed by the Finance Act 1989,
are provided on an unfunded basis within a separate unapproved arrangement.
(e) As disclosed in Table 1, Mr R S Ager and Mr J Gildersleeve each sacriÞced £150,000 of bonus for pension augmentation.The actual
augmentations took place after 28 February 2004 and are therefore not included in the table above.
All transfer values have been calculated in accordance with Actuarial Guidance Note GN11.