L’Oréal is to launch its first employee share ownership plan in a bid to motivate staff.
The share purchase price will be set on June 1, 2018 and 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, which will be rolled out to 52 countries, is limited to 500,000 shares (including employer contribution) and the subscription period will run from June 4 until June 18, 2018.
Beneficiaries will be able 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, and will also benefit from an employer contribution.
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.
“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,” commented L’Oréal chairman and ceo Jean-Paul Agon.