Risky business!
When working for Gallaher Tobacco we had a share save scheme that was a totally different scenario re risk.
Essentially you were guaranteed a “bonus” of 5%+ on contributions at the end of the term. So it was equivalent to good savings rates.
On maturity (3,5 or 7 years options) you could
a) just withdraw the cash (tax free)
b) buy shares at an agreed value at your start date (including a discount)
c) sell immediately
d) keep and get dividends and sell at a future date.
As the share price was gojng up and fairly safe to do so there was extra profit there too.
It was a low risk savings plan for 3,5,7 year fixed terms and a good way to save for future purchases of cars, larger items etc..
I still had shares when they were bought out by Japan Tobacco and gained more profit there. It is a different scenario now with the downturn in tobacco revenue!
Gallaher were a VERY profitable concern and benefits to match, including profit share. AM are not in the same league.
Last edited by sospan; 01/03/19 03:04 PM.
