The employee share scheme of Britain’s largest supermarket chain is set to pay out more than £30million in total.
Tesco announced that over 20,000 employees, who work mainly in its stores and warehouses, will benefit from the growth of its share price. It has increased by a fifth in the last year.
The company announced that its employees who joined their share saving schemes could buy shares for a discounted price, either £1.88 each or £1.98 per share. They can choose to hold them or sell them.
The grocer stated that a worker who invested £68 on average per month into the company’s 5-year share-saving plan would gain approximately £2,560 for their investment of £4,080. If employees invested up to the maximum of £500 per month, they could make a profit worth almost £10,000 over the course of the scheme.
Tesco said that 52,000 workers out of 300,000 took part in the scheme. It is Britain’s largest, and different schemes mature each year. Tesco employees have invested £63.5million in the schemes since 2019
Emma Taylor, Chief People Officer at Tesco said: “Colleagues have told us that they enjoy this method of saving each month. When Tesco does well, employees can share in multi-million pound payouts or keep shares purchased at a discount rate.
Investors have flocked to the shares of this grocer in recent years due to its improved market share and profits.
Tesco’s pre-tax profit soared by 159.5 percent to £2.29billion in the year to February 24, despite the fact that it cut its prices to compete against German discounters Aldi, and Lidl. It claimed that it was the cheapest grocery store over the past 16 months. The company cut prices by an average of 12 percent on 4,000 items over the course of the year.
Ken Murphy’s pay package, which amounted to almost £10 million for the financial year 2023-24, was 57-year-old Ken Murphy as the chief executive.
Tesco shares closed at 304 3/4p, up 1/4p or 0.1 percent.
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