Tesco 2014 Annual Report Download - page 58
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Please find page 58 of the 2014 Tesco annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.Role of the Remuneration
Committee
TheCommittee’skeyresponsibilitiesare:
• TodetermineandrecommendtotheBoardtheremunerationpolicyforExecutiveDirectorsandtheChairman.
• Toensurethelevelandstructureofremunerationisdesignedtoattract,retain,andmotivatetheExecutiveDirectorsneeded
toruntheCompanywhileremainingappropriateinthecontextoftheremunerationarrangementsthroughouttheGroup.
• Toensurethatthestructureofremunerationarrangementsisalignedwiththecreationofsustainablereturnsforshareholders
andthatthelevelofrewardreceivedbyExecutivesreflectsthevaluedeliveredforshareholders.
• AsrequiredbytheFinancialConductAuthority(‘FCA’),TescoBankhasaseparateindependentremunerationcommittee.
TheGroupRemunerationCommitteeisconsultedon,andmakesrecommendationsinrelationtotheremuneration
arrangementsforTescoBankcolleagues,withtheaimofencouragingconsistencywithGroupremunerationpolicy,butit
doesnotmakedecisionsinrelationto,ordirect,howremunerationismanagedwithinTescoBank.
TheCommittee’stermsofreferenceareavailablefromtheCompanySecretaryuponrequestorcanbeviewedatwww.tescoplc.com.
Remuneration Committee activities 2013/14
ThefollowingprovidesasummaryofthekeyareasoffocusateachoftheCommittee’smeetingsduringtheyearandshortlyfollowing
theendofthefinancialyear:
April2013 July2013 September2013 February2014
April2014
(followingyearend)
• Agreerewardoutcomes
• Approvetargets
• ApprovetheDRR
• AGMpreparation
• Considershareholder
feedback
• Reviewbasesalaries
• ReviewChairman’sfees
• ReportfromTescoBank
RemunerationCommittee
• ReviewbelowBoardreward
• Reviewmarkettrends
• Remunerationstrategy
• Reviewperformance
• Remunerationstrategy
• ReviewtheDRR
• Committeeeffectiveness
review
• Agreerewardoutcomes
• Approvetargets
• ApprovetheDRR
• AGMpreparation
Committee advisors
RemunerationCommitteeadvisorsareappointedbytheCommitteefollowingaselectionprocessandtheirrolesarekeptunderreview.
Duringtheyear,DeloitteLLPhavebeenretainedbytheCommitteeintheircapacityasindependentRemunerationCommitteeAdvisors.
FeesforadviceprovidedtotheRemunerationCommitteefortheyearwere£151,646.Feesarechargedonatimeandmaterialsbasis.
DeloittealsoprovidedadvicetomanagementinrelationtotheinterpretationoftheRemunerationReportingRegulations,belowboard
remunerationandimplementationofshareplans.SeparateteamswithinDeloitteprovidedunrelatedadvisoryservicesinrespectof
corporatetaxplanning,technologyconsulting,riskmanagement,shareschemes,internationaltaxation,corporatefinanceandtreasury
totheGroupduringtheyear.
DeloitteisoneofthefoundingmembersoftheRemunerationConsultantsCodeofConductandadherestothisCodeinitsdealings
withtheCommittee.TheCommitteeissatisfiedthattheadviceprovidedbyDeloitteisobjectiveandindependent.TheCommitteeis
comfortablethattheDeloitteLLPengagementpartnerandteam,thatprovideremunerationadvicetotheCommittee,donothave
connectionswithTescoPLCthatmayimpairtheirindependence.TheCommitteereviewedthepotentialforconflictsofinterestand
judgedthattherewereappropriatesafeguardsagainstsuchconflicts.
TowersWatsonalsoprovidedtheCommitteewithbenchmarkinginformationduringtheyearandfeesonatimespentbasisforthis
were£32,700.
JonathanLloyd,theCompanySecretary,isSecretarytotheCommittee.PhilipClarke(ChiefExecutiveoftheGroup)andtheGroup
CFOattendmeetingsattheinvitationoftheCommittee.Theyarenotpresentwhentheirownremunerationisbeingdiscussed.
TheCommitteeissupportedbyAlisonHomer(GroupPersonnelDirector),DrewMatthews(GroupRemunerationDirector)and
CorporateSecretariatandFinancefunctions.
Compliance
Incarryingoutitsduties,theRemunerationCommitteegivesfullconsiderationtobestpractice.TheCommitteewasconstitutedand
operatedthroughouttheperiodinaccordancewiththeprinciplesoutlinedintheListingRulesoftheFinancialConductAuthorityderived
fromtheUKCorporateGovernanceCode.Theauditors’report,setoutonpages65to68,coversthedisclosuresreferredtointhisreport
thatarespecifiedforauditbytheFinancialConductAuthority.
ThereporthasbeendrawnupinaccordancewiththeUKCorporateGovernanceCode,Schedule8oftheLargeandMedium-sizedCompanies
andGroups(AccountsandReports)Regulations2008(asupdatedin2013)andtheFinancialConductAuthorityListingRules.
Shareholder voting
Tescoremainscommittedtoongoingshareholderdialogueandcarefullyreviewsvotingoutcomesonremunerationmatters.Intheevent
ofasubstantialvoteagainstaresolutioninrelationtoDirectors’remuneration,Tescowouldseektounderstandthereasonsforanysuch
vote,andwoulddetailanyactionsinresponsetoitintheDirectors’RemunerationReport.
Thefollowingtablesetsoutactualvotinginrespectofourremunerationreportin2013.
%ofvotes For Against
2012/13Directors’RemunerationReport(2013AGM) 95.2% 4.8%
124,199,537voteswerewithheld(1.54%ofsharecapital).
Other information
Governance Financial statementsStrategic report
Tesco PLC Annual Report and Financial Statements 2014 55