May 15, 2018
L'Oréal launches first employee share ownership plan
May 15, 2018
French cosmetics giant L'Oréal announced on Tuesday the launch of its first employee stock purchase plan, allowing staff to buy a maximum of 500,000 shares.
“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," said Jean-Paul Agon, chairman and CEO of the world’s leading cosmetics group, which employs over 82,600 people in 52 countries.
The move will not change the group’s ownership structure, majority controlled by the Bettencourt family, who own 33.13% of the business as at December 31. The company’s second biggest shareholder is Switzerland’s Nestlé group with a 23.17% share.
The share purchase price will be set on 1 June and will benefit from a 20% discount applied on the average opening price of L'Oréal shares on the Euronext Paris exchange over the twenty trading days preceding the decision. The subscription period will run from 4 June to 18 June 2018, and settlement is planned for 24 July 2018. The beauty group said that 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 the countries where the offer is made available.
The group launched its ‘Share & Care’ programme in 2015, which provides employees with a universal set of social benefits.
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