How is your bonus calculated?
2021/22 Annual Bonus awards will be calculated as
a percentage of eligible earnings for the bonus year,
from 28 February 2021 to 26 February 2022 (364 days).
The Annual Bonus is made up of Tesco's financial
results (Profit and Sales) and your three Individual
Objectives, as detailed below:
3
Profit and Sales
• Profit and Sales targets will be set for the Group
and each Business Unit within it, against agreed
business plans.
• In general, you'll be aligned to the specific part(s)
of the business that you've contributed towards
during the bonus year, as agreed with your
Line Manager and/or People Team. If your role
contributes to a single or dominant Business Unit
(BU), this BU will apply. If your role contributes
towards multiple BUs or there is no dominant BU,
the Group BU will apply.
Any changes of BU will be confirmed alongside any
changes in role and will result in bonus awards
being calculated, according to the time spent
working for different BUs during the year.
Individual Objectives
• You'll work with your line manager at the
beginning of the bonus year to agree your
Individual Objectives.
• Individual Objectives should be Specific,
Measurable, Achievable, Relevant and Timely
(SMART).
20%
Individual
Objectives
Business Criteria
• Before any element of the Annual Bonus pays
out, Tesco Group must achieve the Group profit
underpin.
• For the Profit measure to pay out, the Profit
threshold must also be met, and for the Sales
measure to pay out, the Group Sales threshold
must be met.
Annual Bonus Plan 2021/22
30%
Group or
Business Unit
Sales
50%
Group or
Business
Unit Profit