Tesco 1998 Annual Report Download - page 12

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1 0
Directors’ remuneration policy
The remuneration packages, including contract periods, of
executive directors are determined by the Remuneration
Committee (‘the Committee’). It ensures that the remuneration
package is appropriate for their responsibilities, taking into
consideration the overall financial and business position of the
Group, the highly competitive industry of which the Group is
part and the importance of recruiting and retaining management
of the appropriate calibre.The remuneration of the non-executive
directors is determined by the Board as a whole on the
recommendation of the Executive Committee after considering
external market research.
Compliance
The Committee is constituted and operated throughout the
period in accordance with the principles outlined in the Stock
Exchange Listing Rules derived from Section A of the best
practice provisions of the Code of Best Practice of the ‘Gre e n b u ry
C o m m i t t e e ’. In framing the remuneration policy, full consideration
has been given to the best practice provisions set out in Section B,
annexed to the Listing Rules.The auditors’ report set out on page
15 covers the disclosures referred to in this report that are
specified for audit by the London Stock Exchange.
Details of directors’ emoluments and interests, including
executive and savings-related share options, are set out on pages
10 to 14.
The following summarises the remuneration packages for
executive directors. Copies of the executive directors’ contracts
of employment are available for inspection by shareholders
as required.
Base salary and benefits
The base salary, contract periods, benefits (which comprise
car benefits, life, disability and health insurance) and other
remuneration issues of executive directors and other senior
executives, are normally reviewed annually by the Committee,
having regard to competitive market practice supported by two
external, independent surveys.
Report of the Remuneration Committee
Ta ble 1 D i rectors’ emoluments
Lord MacLaurin (a)
Mr J A Gardiner
Mr T P Leahy
Mr D E Reid
Mr R S Ager
Mr V W Benjamin (b)
Mr J Gildersleeve
Mr A T Higginson (c)
Mrs L James
Dr M G Jones
Mr A D Malpas (b)
Mr T J R Mason
Mr J W Melbourn
Baroness O’Cathain
Mr G F Pimlott
Mr J M Wemms
Short term
£000
–
–
104
95
70
–
90
–
50
–
–
65
–
–
–
76
550
Benefits
£000
8
–
15
31
17
–
36
2
17
–
–
18
–
12
–
18
174
Profit-
sharing
£000
8
–
8
8
8
–
8
–
8
–
–
8
–
–
–
8
64
Salary
£000
243
232
539
488
365
–
460
265
246
33
–
319
31
28
28
391
3,668
Long term
£000
–
–
132
121
90
–
115
–
64
–
–
83
–
–
–
96
701
Total
1998
£000
259
232
798
743
550
–
709
267
385
33
–
493
31
40
28
589
5,157
Total
1997
£000
1,185
40
765
719
537
105
690
–
363
32
920
429
23
39
27
581
6,455
Incentive scheme
a)Lord MacLaurin retired from the Board on 6 June 1997.
b)Former directors.
c)Mr A T Higginson was appointed to the Board on 17 November 1997. His salary includes a joining sum of £170,000.