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Notes to the Group financial statements
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 will be 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 25 February 2012
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
26 February
2011 141,225,710 345.41 5,720,602 348.84 14,847,597 389.21 92,512,818 374.29 65,066,054 382.06 12,399,127 0.00
Granted 28,566,015 364.00 1,133,139 364.00 7,448 402.75 2,555 402.75 40,000 402.75 6,513,912 0.00
Forfeited (21,030,145) 376.08 (1,255,918) 367.98 (439,466) 385.94 (1,897,884) 384.93 (3,314,141) 380.28 (603,508) 0.00
Exercised (16,840,547) 300.49 (622,620) 304.96 (747,015) 276.82 (3,198,654) 272.20 (2,040,493) 288.26 (507,617) 0.00
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
Exercisable as at
25 February
2012 16 ,757,641 309.18 557, 813 309.91 7,8 87,688 402.06 44,131,269 38 0.11 27,530,779 393.35 11,240,457 0.0 0
Exercise price
range (pence)
248.00
to 410.00
307.00
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 4.94 4.65 5.01 6.17
For the year ended 26 February 2011
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
27 February
2010 138,234,520 323.37 5,455,068 326.70 14,550,891 361.57 85,907,622 351.46 54,880,748 363.64 9,185,455 0.00
Granted 29,920,166 386.00 1,470,162 386.00 3,793,684 419.85 21,447,502 419.81 17,065,475 420.00 4,148,918 0.00
Forfeited (7,971,500) 328.09 (666,990) 320.21 (1,030,137) 395.79 (3,915,038) 401.52 (3,192,794) 382.05 (499,596) 0.00
Exercised (18,957,476) 256.02 (537,638) 261.38 (2,466,841) 270.56 (10,927,268) 274.37 (3,687,375) 283.46 (435,650) 0.00
Outstanding at
26 February
2011 141,225,710 345.41 5,720,602 348.84 14,847,597 389.21 92,512,818 374.29 65,066,054 382.06 12,399,127 0.00
Exercisable as at
26 February
2011 15,506,889 366.48 668,423 381.98 6,090,853 375.33 32,577,023 348.13 19,138,101 364.16 3,744,903 0.00
Exercise price
range (pence)
248.00
to 410.00
248.00
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 4.92 4.61 4.98 6.74
Share options were exercised on a regular basis throughout the financial year. The average share price during the financial year ended 25 February 2012
was 385.43p (2011: 417.80p).
132 Tesco PLC Annual Report and Financial Statements 2012