Tesco staff share record payout from company share scheme
It is believed that more than 55,000 Tesco workers will be sharing a £144.4 million windfall as two of the company's employee share schemes reach maturity. In simple terms, every pound invested has now doubled in value due to the strength of the Tesco share price over the last five years. It is understood that approaching 10,000 employees saved the maximum £50 a month over the last five years under the save as you earn scheme and will see their initial investment of £3,000 double to £6,000.
While a doubling of the value of these particular employee share schemes is attractive in its own right it is even more astonishing when you consider the current economic downturn and the impact this has had upon the Tesco share price. Many employee share schemes work on the basis of a no lose situation reverting to a simple savings scheme if the share price falls below the employee share scheme exercise price. There obvious benefits to employees and employers and these share schemes have been known to improve loyalty amongst a company's workforce.
There are now many save as you earn schemes in the UK with more and more employees taking up the option of putting away relatively small amounts of money each month for up to 5 years.
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