At least 7,000 Corus Steel workers will get payouts averaging more than £6,000 each as a result of being in the Corus sharesave scheme. The scheme enabled employees to buy up to £150 worth of shares each month at a discounted rate. In addition, around 6,000 were also in an employee share ownership incentive plan.
ifs ProShare, a not for profit organisation concerned with the issues of employee share ownership and financial education in the workplace, have welcomed the news as yet another example of the benefits of giving employees a stake in the company’s they work for.
Fiona Downes, Head of Employee Share Ownership at ifs ProShare, said,
“ifs ProShare are naturally pleased that once again thousands of UK workers are to benefit from an employee sharesave scheme. This news follows the fact that 12,000 employees at M&S are to receive payouts between £1,000 and £45,000 as a result of their membership of a sharesave scheme.
2007 will see an increasing number of companies and employees benefit from such schemes and we hope this will act as an incentive for other companies to offer their employees a stake in their organisation.”
Many steelworkers who took advantage of Corus's Sharesave scheme bought up to £150 worth of shares a month for as little as 19p. The takeover bid values each share at £6.08.
A Sharesave scheme is an arrangement under which an employee has the right (known as an 'option') to buy shares at a future date at a price determined shortly before the options are granted.
The company can discount the price of the shares by up to 20% off the market value. The scheme has to be open to all eligible employees of the company although a qualifying period of employment can be set. Employees who do not miss any of their monthly payments also receive a tax-free bonus when the scheme matures.
For more information, please contact:
