Tesco 2014 Annual Report Download - page 48

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What did we pay Executive Directors in 2013/14?
The table below provides a ‘single figure’ of remuneration. Where necessary, further explanations of the values provided are included below.
This table and the relevant explanation has been audited.
Single total figure of remuneration – Executive Directors
Salary
£000
Benefits1
£000
Short-term bonus
£000
Long-term incentives
£000
Pension2
£000
To t a l
£000
Philip Clarke 2013/14 1,136 107 0 0 391 1,634
2012/13 1,114 166 0001,280
Laurie Mcllwee32013/14 880 119 0 0 537 1,536
2012/13 863 142 0 0 360 1,365
1 Benefits include car benefits (for 2013/14 Philip Clarke – £45k, Laurie McIlwee – £33k), drivers (for 2013/14 Philip Clarke – £27k, Laurie McIlwee – £31k), security
(for 2013/14 Philip Clarke – £13k, Laurie McIlwee – £29k), taxable travel, disability and health insurance, membership at clubs, Shares in Success awarded under
the all-employee Share Incentive Plan and the value of the discount for shares awarded under the Sharesave during the year. Philip Clarke’s benefits for 2012/13
now include fuel costs which were not known when the report was published. The benefit costs shown have been grossed up for tax.
2 Pension is calculated as the difference between the end of year defined benefit accrued pension and the beginning of year accrued pension increased by the
September CPI in the preceding tax year, multiplied by a factor of 20. The pension figure for 2012/13 has been set to nil where the increase in pension earned over
the year was lower than the CPI increase to the pension built up at the beginning of the year.
3 Laurie McIlwee resigned and ceased to be a director on 4 April 2014. Details of his leaving arrangements are provided on page 51.
Short-term bonus 2013/14
This table has been audited.
Performance measures Maximum opportunity 2013/14 payout
50% based on profitability • Trading profit performance • CEO – maximum bonus opportunity
of 250% of base salary
• CFO – maximum bonus opportunity
of 200% of base salary
0% payout
26% based on strategic financial performance • Group internet sales (10%)
• UK like-for-like sales growth (8%)
• Group working capital (8%)
24% based on strategic non-financial
performance
• Group customer service (8%)
• Group colleague engagement (8%)
• Group CO2 reduction – 8%
The following illustrates performance against targets:
Measures Performance
Below Threshold Target Stretch
Profitability Trading profit (50%) ■
Strategic financial Group internet sales (10%) ■
UK like-for-like sales growth (8%) ■
Group working capital (8%) ■
Strategic non-financial Group customer service (8%) ■
Group colleague engagement (8%) ■
Group CO2 reduction (8%) ■
The business has made good progress this year against our key strategic objectives designed to strengthen our underlying business.
We have increased internet sales by 15% reflecting our focus on our multichannel strategy. We are getting better feedback from
customers and colleagues and have significantly reduced the level of CO2 used across the Group. Despite this progress the bonus
profit underpin was not met and therefore the Executive Directors will not receive a bonus in respect of 2013/14.
Bonus targets are considered by the Board to be commercially sensitive. We have therefore not published the details of targets.
Other information
Governance Financial statementsStrategic report
Tesco PLC Annual Report and Financial Statements 2014 45