Internal, CE Internal Bonus Policy, Version 3, page 7 of 8 - July 2022
6. Important information
Bonuses resulting from this bonus plan are non-claimable and are subject to the decision of the Group Exec
Board. The employer is entitled to cancel the bonus, not to pay the bonus out or to adjust the way the bonus is
calculated based on a review of the company's performance in the financial year. The employer is entitled to
change the decision and cancel the bonus payment even in the case of a previous decision to award the bonus.
All disputed cases and exceptions must be individually assessed and approved by Tesco Group Exec member.
6.1. Malus a clawback - only WL4+
Malus is the ability to reduce awards and gives Tesco the right, in specific circumstances, to reduce your
deferred share awards (either in part or full) before the shares are released to you.
Clawback is the ability to recover variable remuneration (cash and shares) after cash has been paid to you or
shares have been released to you.
The aim of the provisions is to create sustainable pay practices that enable the Board to ensure that variable
remuneration can be reclaimed or adjusted if it turns out that awards were made 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 terms of the Malus and Clawback provisions will be shown on the share award notice when the deferred
shares have been awarded to you.
7. Appendices
Appendix 1 - Bonus Matrix for the evaluated period
8. Glossary
Here you can find explanation of some frequently used words in our policy:
When we use "I", "you" or "colleague" in the policy, we mean employee of Tesco.
When we talk about "Tesco" or "us" in the policy, we mean following entities:
• CZ - Tesco Stores ČR a.s.
• HU - Tesco Global Aruhazak Zrt.
• PL - Tesco Technology & Services Europe Sp. z o.o.
• SK - TESCO STORES SR, a.s.
When we use "HO" in the policy, we mean Head Office.
When we use "DC" or "distribution" in the policy, we mean our distribution centers.