How much will you receive?
The table below shows how the bonus is made up of three different measures; Profit, Sales and your three
Individual Objectives.These are shown as a percentageof your stretch opportunity:
Your bonus measures
Each of the different measures may achieve different outcomes and the bonus will be calculated accordingly.
For example,if the business achieves stretch for Sales (30%), the threshold for Profit (12.5%) and target for all of
your Individual Objectives (10%), you'd receive 52.5% of the maximum bonus opportunity for your Work Level.
The final outcomes of the business measures will be calculated directly in proportion to Tesco's results. For
example,if the Profit outcome is half way between threshold and the target, the Profit award level would be
half way between 12.5% and 25% i.e.18.75%.
Your Individual Objectives
• Each objective will have a defined outcome at threshold - 0%, target - 3.33% and stretch - 6.66%.
• Threshold is the point at which an award is made, target will be the 'expected' level of achievement and
reaching stretch will mean significant over-delivery.
4
Measure Threshold Target Stretch
Profit 12.5% 25% 50%
Sales 7.5% 15% 30%
Individual
0%
(0% for each objective)
10%
(3.33% for each objective)
20%
(6.66%for each objective)
Total 20% 50% 100%
Annual Bonus Plan 2021/22
TheRemunerationCommitteeretainsabsolutediscretionto vary the outcomes of the AnnualBonus Plan.