Argos corporate news
Argos staff share £13 million bonanza as Sharesave scheme matures with a return of 168%
17 May 2006
More than 900 Argos employees across the UK are celebrating a potential pay-out of £13 million following the maturity of the first five-year Sharesave Scheme run by GUS plc, Argos’ parent company.
Employees who chose not to keep their shares bought them at the reserved £3.84 option price and sold them for £10.31, immediately obtaining a £6.47 profit on each share option they held, a return of 168%.
Employees who saved the maximum amount over the five years will be rewarded with a profit of over £28,000, in addition to their £15,000 savings and their end of scheme bonus. Store employees, warehouse workers, delivery drivers and managers are among those who have benefited from the company’s success, many of which will be treating their families to exotic holidays while others have set aside the cash for home improvements, weddings or new cars.
Terry Duddy, Argos Retail Group Chief Executive, said: “This payout is a tribute to the commitment and confidence of our colleagues who have shared in the success of the business for the last five years.”
Under the terms of the scheme, which was first introduced in 2001, employees can buy shares in GUS at a 20% discount using a special tax-free savings account. Employees can save between £5 and £250 per month for three or five years. At the end of the savings period members have the option of using all their savings and bonus to buy the GUS shares at a discount or taking all their savings and bonus in cash.
Argos employees benefiting from this year’s pay-out include:
- Anne Pierce, age 54, and Bill Noble, age 59, are both team leaders at the Argos distribution centre in Castleford, W Yorkshire. They put aside the maximum £250 per month for the scheme and have made a profit of over £28,000 each on their investment. Ann is now planning to celebrate her good fortune by treating herself to a brand new Renault Megane Coupe, some home furnishings as well as spending money for a holiday. Bill is choosing to pay off his mortgage as well go on a holiday to Cyprus
- Ria Binding, age 25, a sales team leader at the Argos store in Talbot Green, made a profit of over £11,000 after saving £100 a month for five years. She plans to use the money to help her buy a new Mini Coupe.
