Asda staff share £43m payout

2 June 2009 12:23pm

Around 16,500 staff at supermarket group Asda are sharing a £43 million payout after one of its savings plans matured.

The group said people who had saved through the Sharesave plan had made a 50% return on their investment, with the total payout the biggest it has made since it was taken over by Wal-Mart in 1999.

Workers are planning to spend the money on things ranging from a second-hand tractor to attending an Elvis convention in Las Vegas.

Under the scheme, staff can save between £5 and £250 a month for three years, at the end of which they receive a tax-free bonus.

The money can then be used to buy shares in Wal-Mart at an option price set at the beginning of the scheme's term. Workers can then either keep the shares or sell them.

The option price for the latest Sharesave plan was set at £20.80 in 2006, a 20% discount on the share price, and since then, Wal-Mart shares have soared to £30.76 on Monday.

As a result, someone who invested the maximum £250 a month for the three years will receive a payout of £13,800, with the average worker getting £2,737.

The group said 95% of workers cashed in their shares immediately, with just under half using the money to pay for a holiday, while 7% put it towards the cost of visiting family and friends abroad.

A further 13% will use the cash to fund home improvements, 6% will use it to pay for a wedding and 4% will buy a new car.

Around 2% of people said they would use the money to improve their looks, either through cosmetic surgery or paying for a makeover or new clothes.

© The Press Association