7
Q Do malus and clawback
provisions apply?
Annual Bonus Awards for WL4 and above are
subject to malus and clawback.
• Malus is the ability to reduce awards
and gives Tesco the right, in specific
circumstances, to reduce your bonus
(either in part or full) before it is paid to
you. Your Annual Bonus Shares will also
be subject to malus before the shares are
released to you.
• Clawback is the ability to recover the cash
or your Annual Bonus Shares after the cash
portion of your Annual Bonus has been paid
to you or your Annual Bonus Shares have
been released to you.
The aim of the provisions is to create
sustainable pay practises that enable the
Board to ensure that variable remuneration
can be reclaimed or adjusted if it turns out
that awards were made or released in error
or on an inappropriate basis.
Examples include where a bonus was paid
based on financial performance which later
turned out to have been misstated or where
there was a material error in its calculation.
The malus and clawback provisions applying
to your Annual Bonus Shares will be shown
on the share award notice when the Annual
Bonus Shares have been awarded to you.
A
Q How do periods of unpaid
absence affect the Annual
Bonus calculation?
A Sum of absence periods, if longer than 30 days
(e.g. maternity, parental leave, career break,
sickness, garden leave etc.) will be deducted from
the number of eligible days worked in the year.
Unpaid periods of maternity, paternity, shared
parental leave and adoption leave will be pro-rated
in line with local statutory obligations