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Tesco staff to share £110m bonus
Wednesday June 1st 2011
Staff at Tesco will share a record Â£110 million bonus pot after the supermarket's annual profits haul of Â£3.8 billion, it has been revealed.
Around 225,000 workers will be eligible for the "Shares In Success" scheme, which paid Â£105 million in 2010 and Â£98 million the year before.
Staff who have been working at the company for at least a year will be paid shares worth around 3.6% of their salary up to a maximum of Â£3,000. Every employee is covered by the scheme from part-timers to directors and the chief executive.
Although the shares are issued immediately, staff need to stay with the firm for another 12 months 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 Â£40 million worth of shares under the 2006 scheme became eligible to sell them tax-free from Wednesday, 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 Â£12.4 million in short-term cash and share bonuses to its board of directors last year.
Copyright Â© Press Association 2011
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