Capgemini Rolls Out New Employee Share Ownership Initiative
Capgemini's Employee Share Ownership Plan Overview
Capgemini has recently announced its twelfth Employee Share Ownership Plan (ESOP), marking a significant commitment to employee engagement and investment in the company’s future.
Broad Participation for Employees
This new ESOP is designed for approximately 98% of Capgemini's workforce, highlighting the company's dedication to ensuring that all employees are closely tied to the company's performance and growth. The plan allows for a capital increase, with up to 2,700,000 shares available, which equates to around 1.58% of the outstanding shares. With this initiative, Capgemini aims to sustain its employee shareholding at about 8% of Capgemini SE's capital.
Share Buyback Authorization
During a recent Board of Directors meeting, Capgemini's leadership authorized a specific budget for share buybacks distinct from the ongoing multi-year share buyback program. This strategic move is aimed at mitigating any dilution effects that may arise from the capital increase related to the new ESOP.
Timeline for Enrollment
According to the established schedule, the reservation period for this share purchase will start on September 12 and continue through October 1. Following this, there will be a subscription and revocation phase from November 12-14. The share price will be finalized on November 6, with the capital increase officially occurring by December 18.
Subscription Mechanism and Employee Protection
Employees will have access to structured formulas that allow them to subscribe to shares while minimizing risks associated with non-tradable periods. The voting rights for shareholding may be exercised by employees, a collective investment scheme, or a related financial entity, depending on the method of participation.
Advantages of the Leveraged Offering
The leveraged guaranteed offering is a key component of this ESOP. It involves protective transactions executed by the financial institution managing the offering, which will help shield employees from potential losses during the non-tradable period. This aspect of the plan, managed by a respected institution, adds additional security for participating employees.
Capgemini's Mission and Vision
Capgemini stands as a leader in business and technology transformation, committed to guiding organizations towards a sustainable digital future. With a diverse workforce exceeding 350,000 members globally, the company focuses on leveraging technology to create significant impacts across various sectors. In 2024, Capgemini reported a robust revenue of €22.1 billion, affirming its continued success and growth in the competitive market.
Looking Ahead
As Capgemini transitions into implementing this share ownership plan, it underscores its philosophy of inclusivity and employee participation in the company's journey. By aligning employee interests with company performance, Capgemini is fostering a collaborative and motivated workforce ready to tackle future challenges together.
Frequently Asked Questions
What is the purpose of Capgemini's Employee Share Ownership Plan?
The ESOP aims to align employees with the company's performance and foster greater ownership among employees.
How many employees are eligible for the ESOP?
Approximately 98% of Capgemini's employees are eligible to participate in the plan.
What is the timeline for the share reservation and subscription?
The reservation period runs from September 12 to October 1, while the subscription phase is from November 12 to 14.
What measures are in place to protect employees from losses?
The plan includes leveraged guaranteed formulas to safeguard employees against potential losses during periods when shares are not tradable.
How does Capgemini support its vision for a sustainable digital future?
Capgemini is committed to transformation initiatives that leverage technology for sustainable practices, empowering organizations to thrive in a digital world.
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