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Tesco to share out £110m bonus pot

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Around 225,000 Tesco staff are to share a record 110 million pound bonus pot

Around 225,000 Tesco staff are to share a record 110 million pound bonus pot

Around 225,000 Tesco staff are to share a record 110 million pound bonus pot

Around 225,000 Tesco staff are to share a record £110 million bonus pot following the supermarket's annual profits haul of £3.8 billion.

Under the chain's "Shares In Success" scheme, which paid £105 million last year and £98 million in 2009, workers who have been with the firm for at least a year will be paid shares worth about 3.6% of salary up to a maximum of £3,000. All staff are eligible from part-timers to directors and the chief executive.

The shares will be issued immediately but staff must stay with the firm for another year to keep the shares. They can be sold after three years but only on a tax-free basis if held for five years.

Some 71,000 staff who received £40 million worth of shares under the 2006 scheme have now become eligible to sell them tax-free, the firm added.

Tesco said the Shares in Success award was a thank you for the commitment and hard work of staff.

It also paid out £12.4 million in short-term cash and share bonuses to its board of directors last year.

While sales were flat in the UK over the last financial year, continued strong growth overseas helped the group notch up another year of record annual underlying profits, up 12% to £3.8 billion.

New chief executive Phil Clarke, who took over in March from Sir Terry Leahy, has outlined a six-point plan for the year ahead, including a priority to improve its non-food sales performance in the UK where the group has to adjust to increasingly cautious consumers, who are spending less.

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