More than 207,000 Tesco employees will share a £98 million bonus pot after the retail giant reported profits of £3 billion for the last year.
Workers, including checkout operators, drivers and managers will receive a payout, which follows the success of the retailer's share scheme. Around 66,000 employees who are members of the scheme called Shares in Success have became eligible to sell the £37million worth of shares they were awarded tax-free five years ago.
The record payout is in addition to the £238 million awarded by the retailer last year through incentive bonuses and share schemes, which included £21 million of pay and bonuses for its executive board.
To be eligible to participate in Shares In Success, staff must have been employed by Tesco for at least one year on 28 February 2009. All eligible employees who registered for the free shares will receive the equivalent of 3.6% of their salary up to a maximum of £3,000. Shares are held in trust for five years and then become available to sell tax free.
Non-executive chairman, David Reid, said: “As alway,s our success is down to the hard work and skill of the whole Tesco team. They deliver for customers every day and have made Tesco a British success story at home and abroad, an achievement of which we should all be especially proud given the current economic climate. I am delighted that once again all staff are sharing in this success.”
Tesco's annual report, for the 53 weeks to 28 February 2009, showed that its profits grew by more than 10% and the retailer created around 10,000 jobs in the UK.