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Last Updated: Monday, 21 February, 2005, 16:36 GMT
Tesco staff in 106m share bonus
Tesco trolley
The scheme allows staff to purchase shares at a discount price
Tesco staff are to share 106m ($200m) in payouts from the supermarket giant's share option scheme this year.

Under the plan, thousands of Tesco staff set aside between 5 and 50 from their salary every month over a three or five year period.

When the scheme matures they have the option to buy Tesco shares at the price set when they joined the scheme.

Staff who invested in the Save As Your Earn (SAYE) plan in 1999 have made a profit of up to 3,929 each.

'Personal stake'

Shares in Tesco closed at 304.75 pence on Monday.

Being a shareholder in Tesco is important to so many of our staff because it gives them a personal stake in the company's success
Sir Terry Leahy, Tesco chief executive

Employees who started the scheme five years ago can now buy shares at the 1999 option price of 151 pence each, while those who joined the scheme three years ago can buy shares at the 2001 price of 198 pence.

The option price is set at a discount of about 20% to the quoted share price at the start of the scheme.

Staff are free to sell their new shares at a profit or keep them as a long-term investment.

Tesco said over 74% per cent of staff have chosen to keep their shares.

More than 100,000 of the Tesco's 237,000 employees hold shares in the company.

"Being a shareholder in Tesco is important to so many of our staff because it gives them a personal stake in the company's success," said Tesco chief executive Sir Terry Leahy.




SEE ALSO:
Tesco 'spychips' anger consumers
26 Jan 05 |  Business
Bumper Christmas sales at Tesco
18 Jan 05 |  Business
Tesco 'to open non-food outlet'
16 Jan 05 |  Business
Petrol sales boost Tesco turnover
25 Nov 04 |  Business


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