L’Oréal is setting up an Employee Share Ownership Plan across 52 countries, intended to to give its employees a greater stake in the performance and direction of the company.
It follows related iniatives that have seen success in recent years, including the company’s ‘Worldwide Profit Sharing’ policy, and the rollout of its ‘Share & Care’ programme, which has offered social benefits to all employees since 2015.
Jean-Paul Agon, Chairman and CEO of L’Oréal, say the latest addition to this offering, the new Employee Share Ownership Plan, will further this participation.
“L’Oréal has always intended that its employees benefit from the Group’s success and prosperity,” he says.
“This first Employee Share Ownership Plan will give employees who want to participate a new way to support the company’s development and be involved in its strategic projects.”
How will it work?
L’Oréal has outlined the process and requirements of the share programme.
The share purchase price will be set on 1 June 2018. It will be equal to the average of the opening price of L’Oréal shares on the Euronext Paris exchange over the twenty trading days preceding the decision, after a 20% discount.
The plan is limited to 500,000 shares (including employer contribution).
The subscription period will run from 4 June to 18 June 2018, and settlement (payment-delivery) is planned for 24 July 2018.
The shares issued will be entitled to dividends and will rank pari passu with the existing shares from the time of issue.
Beneficiaries will have the possibility to purchase L’Oréal shares in a “classic” subscription formula, where the value of their investment will vary with changes in the L’Oréal share price. They will also benefit from an employer contribution, subject to the terms and conditions described in the plan documentation.
Shares purchased in registered form, as well as employee shareholding fund units, will be blocked for a five-year period, subject to early release exceptions defined by applicable regulations in France and the other countries in which the offer is made available.
The application for admission to trading on the Euronext Paris exchange of the shares issued will be filed as soon as possible after the capital increase.
They will be listed under the same code as the existing shares (ISIN code: FR0000120321) and will be fungible with those shares from their admission to trading.