Share Plans

What's the Story?

Some 8% of Capgemini is owned by it's employees. With a market capitalisation of some E30 Billion, this is worth some E2.4 Billion.

September 2022 saw the 9th launch of the Employee Share Ownership Plan - for 97% of its 350,000 employees in 50 countries. 

Why does it matter?

In Tech talent matters a lot.  Compensation and stock ownerhsip are important planks in the offer to skilled employees. 

The Capgemini share plan allows risk free investment into shares, with a gain defined by share price upside seen over five years. 

The plan is backed by interesting financial engineering to allow employees risk free share investment with an attractive upside (in exchange for an up-front discount, and some of the actual gain).

Offering big chunks of risk-free shares over continuous years means employees understand and trust the offer fully. But with 8% employee ownership, a fair number of employees have stayed invested even following the risk free umbrella of the plan itself.

The employees hold E2.4 Billion of stock - equal to the biggest shareholder (Amundi Asset Management), and similar to the next two biggest investors combined, (Blackrock and FMR LLC).

Newspoint View

The Capgemini plan shows the impact of risk-free share offers. Made possible, because of behind the curtain financial engineering. 

The risk gap between personal finance and institutional money allows this happy medium to play out. It is surprising that more finance firms, particularly insurers are not active in this space.

Share plans have a big role to play in the future of work,  wealth, and income gap issues, which will become more extreme as technology, work and the employment mix unfolds in the 4IR.

Pure employee ownership often assumes employees should control the company. That can produce a unique ethos and strong performance norms, which are  fully distinct from regular listed companies.

Most listed company share plans are within the set of expected benefits. Tax efficient and with add on voting and information rights, these significant uptick benefits justify the cost fully. But often the impact ambition to drive a step change in employee culture and performance is muted.

If employees are your biggest shareholder, maybe the ownership engagement process should at least match to your main institutional investors?

There is big money within the risk and return difference between an individual and a company. Insurance and banking have known this for centuries.

Employee share plans are no longer fringe; we can expect that financial institutions will recognise this as a significant opportunity.  

Executive Compensation and Incentive Design

Remuneration Advisory and Support 

Reward and Share Plans 

ESG and Sustainability

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