6 February, 2008
Tesco staff share record-breaking £175 million payout
Over 51,000 Tesco staff across the UK will share the rewards of Tesco's largest ever share payout as two of its Save As You Earn share schemes mature, it was announced today.
With the Tesco share price at £4.16 when the scheme matured on 1 February, over 8,000 top savers, including checkout assistants, dot.com delivery drivers and head office staff, stand to net more than £8,500 each. This is a 160% return on investment – probably the best return to individual savers anywhere in the UK.
While many staff cash in their savings to spend on exotic holidays, weddings or new cars, some choose to secure their finances by paying off the mortgage early. Up to 68% opt to re-invest their shares, with many saving to buy their first house, pay for their children's education, or put towards their retirement.
Tesco chief executive Sir Terry Leahy said: "Our staff are amazing and they deserve to share in Tesco's success. Save As You Earn schemes are becoming a more popular way to save. One in three staff now save with one of our share schemes and I'm delighted that so many choose to invest and enjoy the rewards of their hard work."
Some of the staff spending their cash this year include:
Chris Brennan, 25, works as a non-food trading manager at Manchester Bagueley Extra and has worked at Tesco for nine years. He currently saves with two three-year SAYE schemes, with £50 a month saving on each scheme. This year he’s expecting a £4,000 payout and plans to pay off his car loan and decorate his home. He bought and sold his first house and now lives in his second home with his partner and two children. Chris's oldest boy is 18 months and youngest girl is four months and his partner helps homeless people.
He started working at Tesco as a non-food graduate manager programme having worked at Tesco from age 16, and during university. He studied Business Management at Manchester University. "I like my job because of the variety – everyday brings new challenges. I have the potential to move around the country to any store and I love always being on my feet and not stuck behind a desk all day. Tesco has a warm, family feel and fosters staff potential. I have definitely made use of the way they have supported me by moving up the ranks."
Vera Wang, 58, is in charge of store security at the Tesco Portsmouth store. Vera has been working at Tesco for 30 years since the store opened and has been saving with the SAYE since 1981 when the scheme was first launched. She has been putting away £10 on her current five-year scheme, but recently increased the amount she saves on her other schemes to £20 to put towards her retirement.
With this year’s expected pay out of £1,700, Vera is taking her two grandchildren to visit their Aunt in Greece. Vera is taking 13 year-old Sam and 16 year-old Natasha to Crete for a two-week holiday. While they’re on holiday, Vera’s daughter Christine will be enjoying a mini-honeymoon with her boyfriend. Christine, who also works at the Portsmouth store, has been working at Tesco for 10 years and also saves £10 a month on the SAYE scheme.
Vera has also recently been voted ‘Multi-agency individual of the year’ by the Hampshire Constabulary. Vera has made 674 arrests in the ten years she has been in her current roll and was nominated by the Portsmouth Operational Command Unit.
Vera loves her job at Tesco. "I love the people and the benefits - Tesco has always really looked after me.
Nina Stevens, 33, works full-time as a trainee service manager at the Tesco Bristol store. She has been saving with the SAYE scheme for 10 years now and starts a new scheme every year. She is currently saving the maximum of £50 a month on different five-year schemes. Two years ago she spent the payout on the deposit for a house and last year everything was spent on furniture to make it cozy. This year, depending on the price of shares, she will keep them or spend the payout on her wedding, which is taking place in July. She's planning an evening ceremony for 200 people, so an anticipated £8,500 payout will be very helpful to help accommodate all the guests. She and her fiancée Paul are also planning a honeymoon in the Maldives, as they have always wanted to go to a deserted island and just stretch out at the beach.
Cheryl Malone, who was 21 in December, is a checkout manager at the Norwich Harford Bridge Tesco store. This year is her first payout from the SAYE scheme, having only worked at Tesco for 18 months, but she has big plans for it. Cheryl's boyfriend Kyle, who works in a different branch of Tesco, will also be 21 in April. Cheryl and Kyle are flying to New York for six days at the beginning of May to celebrate their birthdays.
Cheryl estimates that she will get £1,500 from her shares, while Kyle is expecting even more. She also saves with the Buy As You Earn scheme, with which she saves £100 per month. Cheryl says, "It's a great incentive. I have doubled money that I would otherwise have spent over the year without realising it.” She really enjoys working at Tesco and is keen to work in retail management. She says of her job: "It's always challenging - retail is such a fast-moving environment, it really keeps you busy. A week in New York will be a great reward!"
Notes to editors
- The share option price set at the start of each scheme is around 20 per cent less than the share price at that time, ensuring that savers make money right away.
- Tesco is the UK's biggest private sector employer with more than 270,000 employees in the UK.
- Further case studies and some photos are available.
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