Tesco staff awarded £56m in shares

Tesco employees will be awarded shares worth a total of £56 million, half of the £110 million total awarded in 2012.

More than 280,000 employees are eligible for the award, providing they were employed on, or before, 25 February 2013.

The award is equivalent to 1.5% of each employee’s earnings, capped at a maximum of £1,625.

The shares will be held in trust. They can be sold after three years, although they will be subject to tax and national insurance (NI). If employees hold the shares for five years, they can be sold free from tax and NI.

The details of the share awards were published in the supermarket’s first Tesco and society report on 23 May.

The award is intended as a thank you for employees’ hard work and dedication.

The retailer also published its Annual report 2013, which showed that it is expanding the success factors against which annual performance is assessed to create a better balance between incentive payouts, financial results, and the strategic drivers of sustainable shareholder value.

Tesco has also amended the performance targets for its 2013 performance share awards, which are offered to executive directors.

Stuart Chambers, chairman of the remuneration committee, wrote in the report: “The annual bonus will be less heavily weighted towards short-term profits, but linked to a more balanced scorecard of financial, strategic and operational measures.”