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Over 20,000 Tesco Employees To Share £30 Million From Share Schemes

By Nithya Bose in Business News, posted July 4, 2024

More than 20,000 Tesco workers would benefit from a £30 million windfall from the supermarket's share schemes.

The company announced an employee who invested an average of £68 a month over the past five years would see a return of about £6,640 from their £4,080 investment, netting a profit of £2,560.

These payouts stem from Tesco's "save as you earn" schemes, which the company attributes to its strong performance.

Most employees receiving a share of this windfall are those working on the shop floor or in distribution centres.

This announcement follows scrutiny of Tesco chief executive Ken Murphy's £10 million pay package last year.

The significant growth in Tesco's share price has contributed to the £30 million windfall for employees.

Tesco, which employs over 300,000 people in the UK, offers its staff the chance to buy discounted shares through these schemes.

Earlier this week, Tesco shares were priced at £3.06, but employees can purchase them at around £1.88.

The maximum monthly investment an employee can make is £500.

Those who invest the maximum can potentially make £10,000 from the three-year scheme and £20,000 from the five-year scheme if they choose to sell.

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Currently, 52,000 Tesco staff participate in the "save as you earn" (SAYE) scheme, making it one of the largest in the UK.

"Colleagues tell us they like this way of saving every month - and when Tesco performs well, they share in a multi-million pound payout or can keep shares bought at a discounted rate"

The scheme offers different investment options that mature annually.

Upon maturity, employees can either withdraw their savings with a bonus or buy shares at the initial discounted rate offered at the start of the scheme.

Emma Taylor, Tesco's chief people officer, said the scheme's strong performance reflects the hard work of the employees.

She added: "Colleagues tell us they like this way of saving every month - and when Tesco performs well, they share in a multi-million pound payout or can keep shares bought at a discounted rate.

"This year the schemes’ success is rewarding our colleagues with thousands of pounds in profit, helping to boost their savings for everything from holidays to house renovations."

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