Some 50,000 Tesco staff across the UK are celebrating a £150 million payout as two of the company’s Save As You Earn share schemes mature.
And law firm Mace & Jones is urging the UK’s four million small firms to consider launching a Tesco style employee share scheme.
Tesco employees who joined the scheme five years ago can now buy shares at the £1.98 price set when joining. Tesco’s shares closed at 429.5p last week. More than 6,000 top savers, including checkout assistants, delivery drivers and managers, therefore stand to net more than £7,000 - a 120 per cent return on investment.
Under the scheme, staff can set aside a fixed sum, between £5 and £50, from their salary every month for a three- or five-year period. When the scheme matures they have the option to buy Tesco shares at a price set when they joined the scheme.
Mace & Jones corporate lawyer Bruce Robinson said share schemes are an excellent way of attracting, motivating and retaining staff. “Essentially through the share plan employees are being rewarded for their contribution to Tesco’s business, which has seen enormous growth in profits over the past five years," he said. “This is a great deal for both the employer, the employees and the other stakeholders in the business.
“The idea behind it and other share schemes is to motivate staff by giving them a sense of ownership and a keen interest in how the business performs. Share schemes are proving an increasingly popular way of running a business and can provide attractive tax incentives for both the employee and the employer.”
