Tesco bids for staff loyalty with new shares scheme

first_imgRelated posts:No related photos. Previous Article Next Article Comments are closed. Tesco has introduced a new tax-free share-buying scheme for staff to takeadvantage of the Government’s All Employee Share Ownership Plan (Aesop)legislation. The food retail giant announced the launch of the Buy As You Earn initiativelast week, which it hopes will help retain its employees. When Aesop becomes law in December 2002 companies will no longer be able toaward shares under existing profit share schemes. Staff will not be able tosell their shares tax-free for five years compared to the current three-yearlimit. Under BAYE the 180,000 part- and full-time Tesco employees who have workedfor the supermarket for three months or more can buy £5-£110 worth of shares inthe company at the market price every four weeks. Tesco, which claims to be the first supermarket to respond to the newlegislation, said shares bought at an assumed price of £2.30 in February 2002and sold in March 2007 at a share price of £4.02 would show a tax-free profitof £34.50 per share. Maryann Barnacle, reward manager at Tesco, said, “Having a stake in thecompany helps keep staff loyal. Tesco has a long history of share ownership, asit helps employees take an interest in the share price and link theindividual’s performance to the company’s. “We are always keen to utilise government legislation to help ourstaff.” For the first time Tesco has given employees the opportunity to apply forshares online. To make sure that all staff are aware of the new scheme Tesco mailed theinformation to their home addresses as well as producing internal posters andcanteen table-top flyers. Tesco HR director Clare Chapman said, “Our staff are key to our successand we want them to be able to share in our growth in as many ways aspossible.” By Paul Nelson Tesco bids for staff loyalty with new shares schemeOn 6 Nov 2001 in Personnel Todaylast_img