There will be an extra spring in the step of 19,040 Asda employees today as they collectively receive a £61.7m windfall from the maturation of Walmart’s employee share scheme.
The payout is based on the Walmart (WMT) share price at the close of market on 31 May 2013.
“This record bonus pot reflects the success we’ve seen this year, all of which is down to the hard work and commitment of our colleagues across the business. Giving our colleagues the chance to save each month, risk free is just one of our ways of saying thank you and a great way to ensure that they reap the rewards of their exceptional efforts,” said Asda’s executive people director Hayley Tatum.
Asda’s Sharesave scheme allows staff to pay in between £50 and £250 of their salary per month for a three-year period. At the end of the three years they receive the opportunity to buy Walmart shares at a 20% discount on the market value in 2010; they also receive a small tax-free bonus. They are then able to sell the shares at today’s market rate, offering the opportunity to cash-in on a profitable return if the shares have risen in price.
For example, an employee saving £50 a month over the three-year period will receive more than £3,000, while someone who saved the maximum amount of £250 a month will take home more than £15,500.
The share ownership scheme has delivered more than £650m for Asda staff since it first launched in 1982. Total payouts from the Asda Sharesave scheme in the last five years were worth £50.9m in 2012, £49m in 2011, £47m in 2010, £43m in 2009 and £37.5m in 2008, Asda said in a statement.