Tesco has confirmed that its staff are set to share £98 million in bonuses this year following positive results published in its annual report.
More than 207,000 staff will benefit from its Shares in Success scheme, where staff will receive free shares worth 3.6 per cent of their annual salary to a maximum of £3,000.
All staff who had been with Tesco for at least a year by the end of February are entitled to the bonus.
The record bonuses for the retailer come after it announced its annual profits had broken the £3 billion mark for the first time and follow the £238m paid out to management and staff through incentive and share schemes last year.
This includes £21m of pay and bonuses to Tesco’s executive board, slightly down on last year, including around £5m for ceo Sir Terry Leahy, The Times reports.
Shares are held in trust for five years and then may be sold by employees on a tax-free basis.
About 66,000 Tesco staff who have held shares in the scheme since 2004 also become eligible to sell the £37m worth of stock they were awarded five years ago on a tax-free basis.
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