Employees at the UK’s second largest grocer Asda will receive a record £49 million payout this year after their Sharesave scheme with the supermarket’s parent company matured.
The savings programme allows participating staff members to save between £5 and £250 each month and after three years they can exchange their cash pot for discounted Asda shares.
A tax-free bonus is part of the payout, which was designed by Walmart almost 30 years ago to allow colleagues to benefit from the success of the business.
It is not the first time this year that Asda employees have reaped the rewards for the company’s success in the competitive UK grocery market.
In February the grocer reported a 0.6 per cent year-on-year increase in like-for-like sales for 2010, and announced that it was rewarding its employees with a share of a £26.9 million bonus for successfully meeting targets.
But the Sharesave scheme has the potential to be a much more lucrative investment, with those who have saved £50 a month, for example, receiving more than £3,300 - over £1,400 more than their original investment of £1,920.
Sarah Dickins, People Operations and Policy Director at Asda, said: “This is the third consecutive year that our colleagues have enjoyed a record Sharesave payout.
“Our colleagues drive the long-term success of our business; with a 70 per cent increase on the money they invested for this year’s payout I am delighted that so many of our colleagues are reaping the rewards of their hard work.”
Some 14,700 Asda staff will share the £49 million payout.