Record pay-out for ASDA staff

Jun 2 2009 by Henryk Zientek, Huddersfield Daily Examiner

SUPERMARKET staff in Huddersfield are among more than 16,500 ASDA workers to share a £43m pay-out under the company’s Sharesave plan.

The 2009 pay-out is the largest since US-based Wal-Mart acquired ASDA in 1999.

ASDA’s healthy share price means all investors, including staff at the Bradford Road store in Huddersfield, will get a 150% return on their monthly investments – meaning shareholders who have saved a maximum £250 a month for the past three years will pocket about £13,800.

The option price was set at £20.80 back in 2006 and the Wal-Mart share price was at £30.76 on Monday. This means that the average ASDA colleague investing in the scheme will receive a pay-out of £2,737

Leeds-based ASDA said that the 95% of investors choosing to cash in their Wal-Mart shares plan to spend their savings on a whole host of things – from second-hand tractors to attending Elvis conventions in Las Vegas.

Some 7% plan to spend the money visiting family and friends overseas with 6% set to use the cash to pay for their weddings.

Some 13% are planning to spend their windfall sprucing up their homes, while 2% want to use it to give themselves a make-over.

ASDA people director Caroline Massingham said: “Over 200,000 colleagues have already benefited from ASDA Sharesave, but this year marks our biggest ever pay-out since we were taken over by Wal-Mart in 1999.

“Our colleagues drive the success of this business and Sharesave ensures they also reap the rewards. With a 50% increase on the money they invested, it’s great to see that over 16,500 of our colleagues rewarded with such a big windfall.”

The Sharesave plan, created in 1982, ASDA 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%.