Belfast Telegraph

Friday 21 November 2014

Tesco workers share £105m bonus pot

Tesco has announced it will pay workers a record bonus
Tesco has announced it will pay workers a record bonus

Supermarket giant Tesco has announced it will pay workers a record bonus after its annual profits soared to £3.4 billion.

More than 216,000 Tesco staff - from checkout operators to drivers and managers - will share a £105 million bonus pot.

This year's payout for staff comes on top of £24 million of pay and bonuses for executive management - including £5.2 million in salary, bonus and shares for chief executive Sir Terry Leahy.

Non-executive chairman David Reid said: "We've had Tesco's best ever year in a 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."

The payout follows profit growth of 10% to £3.5 billion in the year to February.

Employees who have worked with Tesco for at least a year will receive the equivalent of 3.6% of their salary in shares, up to a maximum of £3,000-worth.

Staff will be able to sell the shares tax-free in five years' time, under the supermarket's "Shares In Success" scheme.

Tesco added that 75,500 staff who have held shares in the scheme since 2005 are now eligible to sell the £39 million-worth of shares they were awarded five years ago tax-free.

This year Tesco increased its dividend for shareholders for the 26th consecutive year.

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