Tesco employees bag £105m bonus pot

Following an annual profit rise of £3.4bn, Tesco (LON:TSCO) will reward more than 216,000 members of retail staff with a share of a £105m bonus pot.

Kate Neilson
shareprices.com - Wednesday, June 02, 2010

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Tesco has awarded a £105m bonus pot to workers

The group announced today that the workers, including checkout operators to store managers, will receive a part of the nine-figure fee as part of the Shares in Success scheme. And some 75,000 staff who have held shares in the same programme for the last five years are now eligible to offload their £39m worth of shares, tax free.

The bonus comes on top of the £24m forked out by Tesco for pay and bonuses for executive management including the £5.2m salary, bonus and shares package given to Chief Executive Sir Terry Leahy.

Staff have been bolstered by the record pay-outs thanks to the 10 per growth in profit for the year ending in February that saw Tesco tallying profits of over £3bn.

The group’s share price has remained relatively flat today, gaining over 0.1 per cent and some points of morning trading and losing as much as one per cent. But at midday the share were down just 0.4 per cent.

Tesco’s has performed adequately in relation to competing retail stocks. Marks and Spencer (LON:MKS) are the biggest loser with shares shedding 2.5 per cent. And direct competition in the supermarket sector is also down on Tesco with Morrison Supermarkets (LON:MRW) and J Sainsbury (LON:SBRY) both one per cent down.

Investor confidence will be buoyed by Tesco’s willingness to offer a record bonus during a moment of economic concern. And with the group recording a dividend increase for shareholders for the 26th consecutive year this year, Tesco is still one of the top performing FTSE 100 retail stocks as it makes up almost a third of the UK grocery market share.

Speaking about the £105m bonus pot, Non-Executive Chairman David Reid said: “We’ve had Tesco’s best ever year in really challenging economic climate and that success is down to the hard work and skill of the whole Tesco team.

“At home and abroad they’ve helped build a great business by doing what we do best, delivering for customers. I am delighted that once again all staff are sharing in this success.”

 

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