Nearly 1,500 FirstGroup rail staff  – most of them working on the frontline –  are set to enjoy a share of £9.5 million as the transport giant’s latest Save As You Earn (SAYE) scheme matures.

Some staff will have made nearly £15,000 in the scheme according to FirstGroup, which runs the First Great Western, First Capital Connect, ScotRail and First TransPennine Express passenger franchises plus the First GBRf freight company. It also has a major holding in Hull Trains.

The share-out comes at a time when First Great Western has been under fire from a number of quarters because of performance problems.

The company has now put in place a new management structure and says performance is improving.

On Friday 1 February, 71 per cent of scheme members – around 3,000 people – bought shares at a discounted price of £2.67 apiece against their  market value of more than £6.70. 

That gave each member of staff who saved the average of £56 a month a gain in excess of £3,300.  

Those who saved the maximum £250 a month made just under £15,000.

Chief executive Moir Lockhead said: “The hard work and commitment of our staff  has delivered the share price growth to make FirstGroup one of the UK’s top 100 companies. We’re delighted that so many of our people are able to enjoy a share of our success.”

Since 2002, FirstGroup has offered its staff annual opportunities to join its SAYE schemes. 

Members save for a fixed three-year term and can then use their savings,  plus  a tax-free bonus, to buy shares based on the market price at the start of the savings period.

The shares are discounted by 20 per cent, which is the maximum allowed by the Inland Revenue.

The company also offers a Buy As You Earn (BAYE) Share Incentive Plan,  which gives staff the opportunity to buy FirstGroup plc shares from their pre-tax (gross) pay. 

As well as tax and National Insurance breaks, BAYE offers staff free matching shares from the company.

2008 scale of return for 2004 savers

1. The SAYE scheme maturing on 1 February 2008 is the 2004 scheme (Discounted share price: £2.67)

2. Overview of gains made based on a share price of £6.7425 (the share price at which staff exercised on 1 February 2008):

• Saving £10 per month – £590.69                          
• Saving £56 per month – £3,300
• Saving £250 per month – £14,922.39