L’Oréal is announcing the launch of its first Employee Share Ownership Plan. The plan will be rolled out in 52 countries and will give L’Oréal employees, in France and internationally, the possibility to be even more closely linked to the Group’s development.
Following the implementation of a “Worldwide Profit Sharing” policy which gives employees a stake in the company’s results in France and internationally, and the roll-out of the Share & Care programme, which has offered a set of social benefits to employees in all countries since 2015, L’Oréal is starting a new chapter of its social policy with this Employee Share Ownership Plan.
On this occasion, Jean-Paul Agon, Chairman and CEO of L’Oréal, said, “L’Oréal has always intended that its employees benefit from the Group’s success and prosperity. 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.“
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.