ifs ProShare, a not for profit organisation concerned with the issues of employee share ownership and financial education in the workplace, today welcomed the fact 50,000 employees at Tesco are to receive thousands of pounds as a result of saving through a Save As You Earn (SAYE) share plan.
The total payout amounts to almost £150 million - a record payout for Tesco and a record payout for any SAYE scheme in the UK.
Fiona Downes, Head of Employee Share Ownership at ifs ProShare said:
"It's great news for the checkout assistants, delivery drivers and other employees at Tesco who will benefit from a bumper payout. It is also good news for SAYE schemes in general as this is yet another positive example of the benefits saving in this way can have. The success of the Tesco SAYE scheme should serve as an inspiration to both employees not participating in their company scheme and companies not currently offering any form of employee share ownership to their workers."
6,000 of the 50,000 recipients will receive a payout in excess of £7,000. This amounts to interest of 120% on the sum invested – far better than any high street savings account.
Fiona Downes added "The fact so many employees - over 60% - will keep their shares, demonstrates the confidence employees have in both the scheme itself and the company they are a part of. It also demonstrates that as a long term savings vehicle they are very successful indeed."
Tesco Chief Executive Sir Terry Leahy stated: "Our staff are the main reason so many people choose to shop with Tesco and through Save As You Earn, they can share in the success that they achieve through all their hard work. Share schemes are an important part of our industry-leading benefits package and I'm delighted that so many people have chosen to invest and reaped the rewards they deserve."
Under the SAYE scheme, Tesco staff can set aside a fixed sum, between £5 and £50, from their salary every month for a three or five-year period. When the scheme matures they have the option to buy Tesco shares at a price set when they joined the scheme.
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