Sharesave brings bumper bonus for Asda colleagues
15,600 existing Asda colleagues are set to pocket an estimated £47m(i) following the maturity of a three year Walmart sharesave scheme.
This year’s plan is the biggest ever Sharesave payout since Walmart acquired Asda in 1999, with an estimated £15 profit per share – a 90 per cent increase on each colleague’s savings.
Colleagues who have saved the maximum amount of £250 per month for the past three years are set to receive around £17,000 in total, £8,000 more than their original £9,000 investment.
In previous years, investors choosing to cash in their shares have spent their savings on anything from shark dives to cosmetic surgery, and second hand tractors to attending Elvis conventions in Vegas! However this year, the majority of colleagues receiving the payout are being a bit more practical – spending the windfall on home improvements or saving up for holidays and weddings.
Chet Kuchinad, Asda’s people director, commented:
“In tough economic times like these, it’s great that so many of our colleagues are sharing in the long-term success of the business.
“With almost a 90 per cent increase on the money they invested, they’ll certainly reap the rewards.”
The Sharesave plan, created in 1982, was designed to give ASDA colleagues a stake in the company and the chance to share in the success of the business. The Sharesave plan allows colleagues to save between £5 and £250 every month. At the end of the saving period, colleagues gain a tax-free bonus and can choose to use the savings and bonus to buy Wal-Mart shares discounted by 20 per cent.
(i)Sharesave estimated payout based on recent Wal-Mart Stores, Inc (WMT) share price. The scheme matures on 1st June 2010.