When is the 2021/22 bonus year?
Our bonus year is the same as our financial year and runs
from 28 February 2021 to 26 February 2022
(364 days).
Am I eligible for the Annual Bonus?
You'reeligible for the WL3+ Annual Bonus if you´re a WL3
or above colleague.
New joiners must be employed by Tesco on or before 1
December 2021.
Leavers who remain eligiblemust have a minimum of 90
days continuous service (seeReasons for Leaving).
Bonus awards for existing colleagues who change Work
Level at any point during the year will be prorated
accordingly.
What is the Group Profit Underpin?
The Group Profit Underpin is the minimum level of
Profit that the Group needs to achieve before
either the cash or shares elements of the Annual
Bonus can be paid out. This is set by the
Remuneration Committee*.
Q What are eligible earnings?
A For most people, this will be your salary (excluding any
supplements) on the final day of the financial year,
but adjustments will be made for promotions/
demotions, changes in BU alignment or Tesco entity,
changes of hours, and the period of absence i.e. the
number of calendar days without active work. For
example, sick leave, family member care, unpaid leave
or career break, maternity and parental leave,
unauthorized absence, garden leave is taken into
account. Details can be found in the valid CE policy
and examples in the appendix..
Questions and answers.
How is my Business Unit decided?
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.
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Q How is the Annual Bonus calculated?
Annual Bonus awards are calculated as a percentage
of your eligible earnings. The outcome of the
financial measures is based on how we perform
against our 2021/22 Profit and Sales targets. The
overall financial outcome* for your Business
Unit will be combined with your total Individual
Objective outturn to create an overall outcome.
This overall outcome will then be applied to your
eligible earnings for the Annual Bonus year to give a
gross award amount which is then subject to local
withholding obligations. Bonus payments will be
pro-rated according to the number of days' service
in an eligible position during the bonus year.
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*TheRemunerationCommitteeretainsabsolutediscretionto vary the outcomes ofthe Annual Bonus Plan.
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