Director/PDMR Shareholding

RNS Number : 1670Y

Tesco PLC

13 May 2016

 

DIRECTOR/PDMR SHAREHOLDING

13 May 2016

Tesco PLC (the "Company")

Grant of Awards under the Tesco PLC Executive Incentive Plan 2014 (the "EIP"), the Tesco PLC Group Bonus Plan (the "GBP") and the Tesco PLC Performance Share Plan 2011 (the "PSP")

On 12 May 2016, the persons listed below were granted nil-cost options over Ordinary Shares of 5 pence each in the Company, the number of shares being calculated using a market price of 159.04 pence per share.

The nil-cost options granted under the EIP and GBP have been awarded in respect of the annual deferred bonus for the 2015/16 Financial Year, as disclosed in the Directors' Remuneration Report of the Tesco PLC Annual Report and Financial Statements 2016 (the "Directors' Remuneration Report"). 

Under the terms of Tesco's remuneration policy, 50% of the annual bonus for the CEO and CFO is delivered in cash and 50% is delivered in shares deferred for three years. To demonstrate their commitment to the business at this early stage of the turnaround, Dave Lewis and Alan Stewart have offered to defer a further 50% of their cash bonus for the 2015/16 Financial Year into shares.

As a result, additional nil-cost options have been granted to Dave Lewis and Alan Stewart under the EIP.  Details of this voluntary bonus deferral are outlined in the Directors' Remuneration Report.

Director	Number of Shares subject to option (PSP)	Number of Shares subject to option (EIP)	Voluntary Bonus Deferral Number of Shares subject to option (EIP)
Dave Lewis	2,161,405	939,720	469,860
Alan Stewart	1,178,948	507,449	253,724
PDMR	Number of Shares subject to option (PSP)	Number of Shares subject to option (GBP)
Matt Davies	954,948	391,741
Benny Higgins	1,098,509	379,058
Alison Horner	717,979	315,911
Trevor Masters	1,247,905	530,498
Adrian Morris	676,718	277,605
Jason Tarry	778,106	330,954
Robin Terrell	778,106	307,784

The nil-cost options granted under the EIP and GBP will become exercisable on 12 May 2019, subject to continuous employment, with the exception of the nil-cost options granted in respect of the voluntary bonus deferral which will become exercisable on the earlier of 12 May 2019 or the resumption of dividend payments to the Company's Ordinary Shareholders.

The nil-cost options granted under the PSP will become exercisable on 12 May 2019, subject to the achievement of the relative Total Shareholder Return, Cumulative Retail Cash Generated from Operations and Key Stakeholder performance targets over the performance period, as outlined in the Directors' Remuneration Report.

In the event that dividends are paid in the period between grant and exercise, the number of shares subject to option in each case will be increased to reflect the dividends that would have accrued had they been reinvested in shares.

The nil-cost options granted under the EIP and GBP contribute towards the shareholding guidelines policy for Directors and PDMRs.  From 2016/17, the shareholding guidelines for PMDRs have been increased from a minimum of 100% of annual salary to a minimum of 200%.  The shareholding guidelines for Directors are outlined in the Directors' Remuneration Report.

Release of Shares under the Tesco PLC Group Bonus Plan (GBP)

The Company was informed that, on 10 May 2016, Jason Tarry received 15,685 Ordinary Shares of 5 pence each in the Company upon their release following the end of the three-year holding period from the Tesco PLC Group Bonus Plan.  The share award was granted on 10 May 2013 as part of the annual bonus for the 2012/13 Financial Year. 

This represents the gross number of shares released including dividend equivalent shares which have accrued between grant and vesting.  A proportion of the shares released have been retained to cover Income Tax and National Insurance Contributions due on release.

The share price on release was 159.9 pence per share.

This announcement is made in accordance with the requirements of DTR 3.1.4.

Enquiries:

Paul Moore Company Secretary Tesco PLC Tesco House Shire Park Kestrel Way Welwyn Garden City Hertfordshire AL7 1GA Tel: [phone]

 

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