- Over 55,000 members of staff benefit from record payout.
- Tesco’s Save As You Earn share scheme encourages a strong savings culture amongst employees.
Employees at Tesco are this month reaping the rewards of saving in the company’s Save As You Earn share schemes. Over 55,000 members of staff, who have saved between £5 and £50 a month for the past 5 and 3 years, are sharing a £144.4m payout with returns of 100% and 44% for each scheme respectively.
Over 9,000 top savers, who have contributed the maximum £50 every month for the past five years, a total of £3,000 each, will receive more than £6,000. The strong return reflects the fact that, even in difficult market conditions, Tesco’s share price has remained resilient closing at £4.22* on 1st February when the two schemes matured.
Offering an incentive to save money for the future, staff take up for the Tesco SAYE scheme across the UK and Republic of Ireland in 2009 reached over 77,000 – 8,000 more than the previous year - all of whom will receive a pay out, or have the opportunity to retain their shares, when the schemes mature in 2013 and 2015.
David Potts, Retail Director for Tesco commented;
“Tesco’s Save As You Earn scheme has really delivered for thousands of employees this year. With reports suggesting that 2010 could be another year of stretching personal budgets for many people, today’s returns will be a very welcome boost to income and are well deserved for the continued dedication and hard work of our colleagues.”
NOTES TO EDITORS
*Closing price, 1st February 2010
Employee case studies available
About the schemes:
Under the SAYE scheme, Tesco employees with a minimum of 12 months service can contribute between £5 and £50 of their salary into the scheme every four weeks for a period of three or five years. When the scheme matures, each employee receives a tax free cash bonus and they are given the option to reinvest the total amount to buy Tesco shares at a discounted option price set when they joined the scheme. Employees then have the choice to sell their shares immediately or keep the shares to sell at a later date.
Employees who joined the scheme five years ago can buy shares at the 2004 option price of £2.32 each, while those who joined the scheme three years ago can buy shares at the 2006 price of £3.07.
For more information please call Emma Bowden/Karen Butcher at The Wriglesworth Consultancy: 020 7427 1400 email@example.com
Or the Tesco press office: 01992 644 645