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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 22 February 2014
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
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
Granted 29,258,434 322.00 1,294,873 322.00 – – – – – – 7,0 03,76 4 0.00
Forfeited (24,352,865) 365.89 (1,081,476) 353.68 (3,785,217) 418.07 (21,694,176) 419.27 (17,70 4,212) 415.76 (2,458,290) 0.00
Exercised (9,515,992) 314.96 (200,710) 318 .29 (654,147) 306.38 (5,94 0,411) 302.00 (3,374,535) 322.10 (3,225,216) 0.00
Outstanding at
22 February
2014 122,602,128 331.31 4,899,521 331. 89 8,152,965 397. 59 52,804,433 376.63 32,586,360 379.15 21,099,083 0.00
Exercisable as
at 22
February
2014 15,894,484 353.09 837,652 370.38 8,145,517 397.58 52,801,878 376.63 32,546,360 379.12 4,206,723 0.00
Exercise price
range
(pence)
311.0 0
to
410.00
311.0 0
to
386.00
253.25
to
473.75
253.25
to
473.75
253.25
to
473.75 0.00
Weighted
average
remaining
contractual
life (years) 0.44 0.44 3.63 3.78 3.88 4.18
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. 80 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 53,665,107 387.6 4 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
Share options were exercised on a regular basis throughout the financial year. The average share price during the financial year ended 22 February 2014 was
349.48p (2013: 328.39p).
Other information
Governance Financial statementsStrategic report
Tesco PLC Annual Report and Financial Statements 2014 111