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  • FIRST POST
    • AGray
    • By AGray 9th Jul 17, 10:20 PM
    • 39Posts
    • 6Thanks
    AGray
    Work share scheme - Explanation??
    • #1
    • 9th Jul 17, 10:20 PM
    Work share scheme - Explanation?? 9th Jul 17 at 10:20 PM
    I work for Argos and I have done for a good few years now. I originally took part in their Sharesave scheme when they were Home Retail Group where I would pay in £100.00 per month and receive company shares which would mature after a few years.

    My amount matured and I received a very healthy payout which I was delighted with in 2015.

    I signed up again from 2015 once more to the Sharesave scheme with the same values placed. Towards the end of 2016 Sainsbury's bought Argos/Home Retail Group out and Sharesave was discontinued.

    Any shares that you had from 2015-2016-2017 where then put into a separate account with the company Computershare, in my case I had 340 shares. Sainsbury's then restarted their share plan via Computershare.

    Since the beginning of 2017 I have had these 340 shares which I forgot all about, and they came to mind several weeks ago. Since then I have seen that there has been dips in the share price so I was waiting for the time that shares got up to around £2.60/£2.70 again and I intended to cash in.

    This would have given me around £900.00 give or take. I set the process on Computershare to sell the shares if it hit the balance of £2.60.

    Strangely on Saturday I received a letter in the post from Computershare - It was a cheque. I had been keeping tabs on the share prices so was confused firstly why this cheque had been received as the shares were in the 240 range.

    Alas, the cheque wasn't for hundreds... But quite literally a pittence compared to what I would have expected. £20.00. The cheque even marked the shares as "Dividend Rate: 6.6 PENCE"

    I honestly don't know if this is correct because I didn't say to sell my shares firstly, as my cap hadn't been reached. But now i'm reading the shares certificate were it states shares of "28.4/7 pence". I always took that as the price I BOUGHT the shares at, not the price they would SELL at - So I do think there has been an error??

    I will contact Computershare about it tomorrow if I have time, but if you can check the attachments and see if there is anything of a discrepancy with what I have - I don't really understand the shares and stockbroker stuff in honesty.

    https://drive.google.com/open?id=0B6EAPfTuq5gaQVJ3aWV6NWtmelk

    https://drive.google.com/open?id=0B6EAPfTuq5gabm5TQk9BVGRUS2c
Page 1
    • Eco Miser
    • By Eco Miser 9th Jul 17, 10:50 PM
    • 3,226 Posts
    • 2,989 Thanks
    Eco Miser
    • #2
    • 9th Jul 17, 10:50 PM
    • #2
    • 9th Jul 17, 10:50 PM
    It's a dividend cheque, your share of the profits J Sainsbury plc made in the year ending 11 March 2017.
    Absolutely nothing to do with selling your shares.
    You should get these probably twice a year as long as you own the shares.

    The "28.4/7 pence" is the nominal value of each share and is not connected to the price you paid, the price you will get or anything else of relevance.
    Eco Miser
    Saving money for well over half a century
    • AGray
    • By AGray 9th Jul 17, 11:19 PM
    • 39 Posts
    • 6 Thanks
    AGray
    • #3
    • 9th Jul 17, 11:19 PM
    • #3
    • 9th Jul 17, 11:19 PM
    Oh I see. In all my years of being in a share scheme I never received one of these cheques, which is why it threw me somewhat especially as I had only just started the process of cashing in my shares.

    I guess it was a series of coincidences then that I happened to receive it. Cool. I love free money!

    As this was our first quarter of being under Sainsburys, they must do things differently.
    • westv
    • By westv 10th Jul 17, 7:43 AM
    • 4,372 Posts
    • 1,993 Thanks
    westv
    • #4
    • 10th Jul 17, 7:43 AM
    • #4
    • 10th Jul 17, 7:43 AM
    Oh I see. In all my years of being in a share scheme I never received one of these cheques, which is why it threw me somewhat especially as I had only just started the process of cashing in my shares.

    I guess it was a series of coincidences then that I happened to receive it. Cool. I love free money!

    As this was our first quarter of being under Sainsburys, they must do things differently.
    Originally posted by AGray
    It's probably because previously dividend cash was used to buy new shares rather than being given as cash.
    • AndyT678
    • By AndyT678 10th Jul 17, 9:07 AM
    • 729 Posts
    • 996 Thanks
    AndyT678
    • #5
    • 10th Jul 17, 9:07 AM
    • #5
    • 10th Jul 17, 9:07 AM
    Oh I see. In all my years of being in a share scheme I never received one of these cheques, which is why it threw me somewhat especially as I had only just started the process of cashing in my shares.

    I guess it was a series of coincidences then that I happened to receive it. Cool. I love free money!

    As this was our first quarter of being under Sainsburys, they must do things differently.
    Originally posted by AGray
    It's probably because previously dividend cash was used to buy new shares rather than being given as cash.
    Originally posted by westv
    It was more probably because it was a share option scheme and OP only previously owned the shares for as long as it took to buy and sell them on the scheme maturity date.
    • Gadfium
    • By Gadfium 10th Jul 17, 11:56 AM
    • 628 Posts
    • 1,169 Thanks
    Gadfium
    • #6
    • 10th Jul 17, 11:56 AM
    • #6
    • 10th Jul 17, 11:56 AM
    Oh I see. In all my years of being in a share scheme I never received one of these cheques,
    Originally posted by AGray
    Until the SS scheme matures then you don't own the shares relating to that scheme. It's only when it matures and you exercise the option to buy the shares that you actually own them. You then have to hold those shares when the dividends are calculated and paid out to receive a dividend.
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