Tesco staff share £68m windfall

Nearly
40,000 Tesco staff are to share £68m as two of the company’s Save As You Earn
(SAYE) schemes mature.

Staff,
including checkout assistants, dotcom delivery drivers and managers, who have
been saving between £5 and £250 a month for three or five years, will receive
their payouts this week. Top savers will net more than £24,000.

Sir
Terry Leahy, Tesco chief executive, said: 
“Once again thousands of our staff are sharing in the success of Tesco.

“Even
with the ups and downs of the stock market, SAYE remains a safe and easy way
for our staff to invest and reap the rewards of their contribution to the
business. Three-quarters of our 200,000 UK staff now participate in a SAYE
scheme.”

Under
the SAYE scheme, Tesco staff can set aside a fixed slice of their salary each
month for either three or five years. When the scheme matures, they have the
option to buy Tesco shares at a price set when they joined the scheme.

Employees
who started the scheme five years ago can buy shares at the 1997 option price
of 121.66p each, while those who joined the scheme three years ago can buy
shares at the 1999 option price of 151p. Then they are free to keep the shares
as a long-term investment or sell them and pocket the profits.

The most
recent three- and five-year schemes to be offered to Tesco staff in October
2002 attracted over 63,800 applications.

Five
year savings plan:

Amount
saved each month

Total
savings plus bonus

Value
of shares

£25.00 

£1,725.00*

£2,408.90**

£150.00

£10,350.00

£14.461.90

£250.00

£17,250.00

£24,102.60

 

Three
year savings plan:

Amount
saved each month

Total
savings plus bonus

Value
of shares

£10.00

£387.50

£435.20

£50.00 

£1,937.50

£2,181.10

£250.00

£9,687.50

£10,905.50

 

By
Ben Willmott

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