Tesco staff to receive £175m payout

06-02-2008

Tesco staff to receive £175m payout
Over 51,000 Tesco staff will share a £175 million payout from the company's savings scheme.

The save-as-you-earn scheme allows staff to buy shares at a discount to the market price and on February 1st, when the scheme matured, each share was worth £4.16.

Shares in the supermarket have risen by 20 per cent in the last three years and the top 8,000 savers are expected to receive a payout of more than £8,500 - a 160 per cent return, according to Tesco.

Tesco chief executive Sir Terry Leahy said: "Save-as-you-earn schemes are becoming a more popular way to save.

"One in three staff now save with one of our share schemes and I'm delighted that so many choose to invest and enjoy the rewards of their hard work."

Tesco, the UK's largest private sector employer, said that up to 68 per cent of savers choose to invest their shares, while others spend it on holidays and other luxuries.

Checkout manager Cheryl Malone, 21, said that she would be spending her estimated £1,500 payout on a six-day trip to New York.

Cheryl said: "It's a great incentive. I have doubled money that I would otherwise have spent over the year without realising it."

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