BENGALURU: French IT firm Capgemini said the majority of its 1.7 lakh employees in India are now eligible to participate in the company’s eleventh employee share ownership plan (ESOP). The eligibility criteria for the ESOP include a minimum tenure of 3 months with the company as of the subscription date, which applies to both global and India-based employees.
Capgemini told TOI that the minimum investment required for its employee share ownership plan is 100 euros, which is approximately equivalent to Rs 9,000. The company also said that “the maximum investment, including the leverage effect, is 25% of the annual compensation.”
Capgemini’s new employee share ownership plan is offered to approximately 97% of the employees.The ESOP will be implemented through a capital increase reserved for the Capgemini employees for a maximum of 27 lakh shares (1.5% of outstanding shares).
Under the ESOP, employees will make an initial investment in euros, which will be locked in for a period of 5 years. During this lock-out period, participants will have the opportunity to benefit from the performance of Capgemini’s share price. This allows employees to potentially gain from the company’s growth and success over the long term.
The ESOP is designed to align employee interests with those of the company and its shareholders, fostering a sense of ownership. Employees who want to subscribe to the share purchase plan must believe in its future growth and a commensurate increase in the company’s stock price. “Because the number of shares is limited and applicable for all employees, not many employees show interest in such share ownership plans,” said Shriram Subramanian, founder and managing director of the proxy advisory firm InGovern Research Services.
Capgemini said the new shares’ subscription price will be determined on November 7, and the capital increase is expected to be finalised on December 19. Capgemini has said that employees will have the opportunity to subscribe to the company’s shares through subscription leveraged and guaranteed formulas. These formulas are designed to protect employees from potential losses during the period when the shares cannot be traded.
The French IT firm’s tenth ESOP plan had a subscription of €467 million from over 50,000 employees from 32 countries. About 32 lakh shares were subscribed at a unit price of €145.8. Since 2017, Capgemini has been offering employee share ownership plans to employees on an annual basis, aiming to increase employee share ownership to between 8% and 10% of the company’s share capital.
Capgemini told TOI that the minimum investment required for its employee share ownership plan is 100 euros, which is approximately equivalent to Rs 9,000. The company also said that “the maximum investment, including the leverage effect, is 25% of the annual compensation.”
Capgemini’s new employee share ownership plan is offered to approximately 97% of the employees.The ESOP will be implemented through a capital increase reserved for the Capgemini employees for a maximum of 27 lakh shares (1.5% of outstanding shares).
Under the ESOP, employees will make an initial investment in euros, which will be locked in for a period of 5 years. During this lock-out period, participants will have the opportunity to benefit from the performance of Capgemini’s share price. This allows employees to potentially gain from the company’s growth and success over the long term.
The ESOP is designed to align employee interests with those of the company and its shareholders, fostering a sense of ownership. Employees who want to subscribe to the share purchase plan must believe in its future growth and a commensurate increase in the company’s stock price. “Because the number of shares is limited and applicable for all employees, not many employees show interest in such share ownership plans,” said Shriram Subramanian, founder and managing director of the proxy advisory firm InGovern Research Services.
Capgemini said the new shares’ subscription price will be determined on November 7, and the capital increase is expected to be finalised on December 19. Capgemini has said that employees will have the opportunity to subscribe to the company’s shares through subscription leveraged and guaranteed formulas. These formulas are designed to protect employees from potential losses during the period when the shares cannot be traded.
The French IT firm’s tenth ESOP plan had a subscription of €467 million from over 50,000 employees from 32 countries. About 32 lakh shares were subscribed at a unit price of €145.8. Since 2017, Capgemini has been offering employee share ownership plans to employees on an annual basis, aiming to increase employee share ownership to between 8% and 10% of the company’s share capital.
