Note 6 Directors' emoluments and interests
Aggregate emoluments of the directors of the parent company were as follows:
1997
£000		1996
£000
__________________________
Directors' emoluments4,4504,213
Performance related incentives
- short term bonuses1,2741,262
- long term bonuses731839
__________________________
6,4556,314
Pension contributions
   (including - £201,000 in respect of the Chairman (1996 - £186,000))		1,032932
__________________________
7,4877,246
__________________________

In addition, the company contributed amounts totalling £145,500 to the Tesco PLC Pension Scheme on behalf of two directors who retired from office during the year.



Emoluments of the directors, including the Chairman who was the highest paid director, but excluding pension contributions were as follows:

Total
Incentive scheme_______________
SalaryProfitBenefits____________________________
19971996
sharingLong termShort term
£000£000£000£000£000£000£000
__________________________________________________________________________
Lord MacLaurin7668251412451,1851,194
Mr J A Gardiner40----4040
Mr D E Reid45382585148719680
Mr R S Ager33881863110537526
Mr V W Benjamin77820--105274
Mr J Gildersleeve43582780140690682
Mrs L James2238174273363346
Dr M G Jones32----3229
Mr T P Leahy48581893161765671
Mr A D Malpas594821108189920897
Mr T J R Mason2608195290429348
Mr J W Melbourn23----23-
Baroness O'Cathain27-12--3935
Mr G F Pimlott27----2725
Mr J M Wemms36482467118581567
__________________________________________________________________________
4,144802267311,2746,4556,314
__________________________________________________________________________



Executive share options exercised by directors in the financial year

Number of shares at exercise price (pence)Value realised
_________________________________________________________


217.0

Total		Price at
exercise
(pence)		1997

£000		1996

£000
________________________________________________________________
Lord MacLaurin----144
Mr D E Reid----79
Mr R S Ager51,15351,1533275691
Mr V W Benjamin----191
Mr J Gildersleeve----132
Mrs L James22,00522,0053051940
Mr T P Leahy----79
Mr A D Malpas----113
Mr T J R Mason----66
Mr J M Wemms27,65027,65033031313

Date of grant27.05.93

The value realised from shares acquired on exercise is the difference between the fair market value at exercise and the exercise price of the options. Where individual directors exercised options on different dates the price at exercise shown represents an average of the prices on these dates weighted to the number of options exercised.



Share options held by directors and not exercised at 22 February 1997

Executive share option schemes
(1984), (1994) and (1996)		Number of shares
at exercise price (pence)
___________________________________________________________________
217.0(a)217.0(b)210.0(b)243.0(b)232.0(b)271.0312.0295.0(c)Total
__________________________________________________________________________
Lord MacLaurin-27,650701,040--89,299--817,989
Mr D E Reid-14,74615,238-344,81864,945185,90474,576700,227
Mr R S Ager23,04117,051100,952-142,44639,85285,10483,390491,836
Mr J Gildersleeve-14,747320,911-14,65685,608207,71940,678684,319
Mrs L James-7,33562,018-57,08474,394100,01637,882338,729
Mr T P Leahy20,73768,203139,048157,124-132,84182,752174,576775,281
Mr A D Malpas-20,277538,778--67,896--626,951
Mr T J R Mason--38,619-17,33397,184145,93594,915393,986
Mr J M Wemms25,6609,216116,191--42,804222,20191,881507,953

Date exercisable (d)29.10.9527.05.9610.06.9712.08.9729.09.9727.04.9813.10.9803.07.99

a) The options may be exercised at 185p providing targets related to growth in earnings per share are achieved in accordance with ABI guidelines. If the targets are not met the option holders retain the right to exercise the options at 217p.
b) Except in the case of Lord MacLaurin, one quarter of the outstanding options granted at 217p (or in the case of Mr R S Ager, Mr T P Leahy and Mr J M Wemms all of the outstanding options), 210p (or in the case of Mr R S Ager, Mrs L James, Mr T P Leahy and Mr J M Wemms all of the outstanding options), 243p and 232p may be exercised at 185p, 179p, 207p and 198p respectively, providing targets related to growth in earnings per share are achieved in accordance with ABI guidelines. If the targets are not met, the option holders retain the right to exercise the options at the higher price.
c) Options granted in the year.
d) Date of expiry is seven years from date exercisable.



Savings-related share option scheme (1981)
Number of sharesValue realised
___________________________________________________________
As at
24 Feb 96		GrantedExercisedAs at
22 Feb 97		Exercise price
(pence)		1997
£000		1996
£000
__________________________________________________________________________
Lord MacLaurin9,979--9,979174 - 185--
Mr D E Reid9,7062,7713,6768,801174 - 2496-
Mr R S Ager9,8251,5663,6767,715161 - 24963
Mr J Gildersleeve9,979--9,979174 - 185--
Mrs L James9,5472,7713,6768,642161 - 2496-
Mr T P Leahy9,2702,7713,6768,365185 - 2496-
Mr A D Malpas9,979--9,979174 - 185--
Mr T J R Mason9,557--9,557174 - 250-2
Baroness O'Cathain9,191--9,191204--
Mr J M Wemms9,2702,7713,6768,365185 - 2496-

The savings-related share option scheme subscription price was 249p and the option matures in either 2000 (3 year scheme) or 2002 (5 year scheme).

Mr V W Benjamin retired on 7 June 1996. At that date he held 9,270 options with an exercise price of 185p - 204p.

On 5 March 1997 Baroness O'Cathain exercised options on 9,191 shares. Between 22 February 1997 and 7 April 1997 there have been no other changes in the number of share options held by the directors.

For further details on the company share option schemes see note 23.



The disclosable interests of the directors, including family interests, were as follows:

22 February 199724 February 1996
__________________________________________________
Ordinary
shares		Options
to acquire
ordinary
shares		Ordinary
shares		Options
to acquire
ordinary
shares
__________________________________________________
Beneficial
Lord MacLaurin491,687827,968412,112827,968
Mr J A Gardiner117,775-17,775-
Mr D E Reid325,001709,028222,752635,357
Mr R S Ager184,238499,551105,395469,424
Mr J Gildersleeve184,916694,298147,377653,620
Mrs L James107,398347,37159,921332,399
Dr M G Jones2,237-2,163-
Mr T P Leahy239,483783,646140,054609,975
Mr A D Malpas430,798636,930299,345636,930
Mr T J R Mason86,469403,54349,784308,628
Mr J W Melbourn2,190---
Baroness O'Cathain6,3009,1914,3299,191
Mr G F Pimlott8,294-8,020-
Mr J M Wemms169,702516,318110,607452,992

Non-beneficial
Lord MacLaurin93,075-93,075-


Mr V W Benjamin retired on 7 June 1996. On that date he held 125,809 (1996 -123,041) ordinary shares and 9,270 (1996 - 9,270) options to acquire ordinary shares.

Mr J W Melbourn was appointed as a director on 15 April 1996 and at that date held 2,190 ordinary shares.

Options to acquire ordinary shares shown above comprise options under the executive share option schemes (1984), (1994), (1996) and the savings-related share option scheme (1981) (note 23).

Between 22 February 1997 and 7 April 1997 there were the following changes in the number of shares held by the directors:

    Baroness O'Cathain, a non executive director, held 15,491 ordinary shares after exercising options on 9,191 shares.

    Mr R S Ager sold 18 shares to cover the cost of a matched sale and purchase to transfer shares into a personal equity plan.

Share bonuses awarded to directors under the executive incentive scheme are included in the directors' interests shown above. The shares on allocation are held in trust and released to directors, after two years in the case of short term share bonuses or four years for long term share bonuses, both conditional on continuous service with the company.