Tesco extends share option plan to China

TESCO has extended its international share option plan and international bonus scheme for senior managers to relevant staff in China.

Chinese legislation that had prevented employees from taking part in share plans offered by foreign-owned companies.

Tesco is thought to be one of the first foreign firms operating in China to offer employees the opportunity to hold shares.

Under the option scheme, senior managers have been granted share options that they can exercise after
three years, but within 10, by paying the option price that was set at the start.

Giles Nicholson, international reward manager, said: “We have taken advantage of the law change to roll out the plan. Our growth projections for China are strong – it is a key business for us.”

Under the international bonus scheme, Tesco’s senior staff in China will be eligible for their first award, which is based on company, country and personal performance, later this year. Some staff will be able to take a portion
in shares.

“We have a one-team philosophy, but are sensitive to local issues. We try to roll schemes out where appropriate,” said Nicholson.