L’Oréal is starting a new chapter of its social policy with its Employee Share Ownership Plan. Following the successful implementation of a “Worldwide Profit Sharing” policy, the plan will be rolled out in 52 countries, and offer L’Oréal employees the opportunity to invest in the company. According to Chairman and CEO of L’Oréal, Jean-Paul Agon, “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.”
Qualified employees 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. They will also benefit from an employer contribution, subject to the terms and conditions described in the plan documentation. The plan, limited to 500,000 shares (including employer contribution), will have purchase price set on June 1st based on the average of the opening price of L’Oréal shares on the Euronext Paris exchange over the twenty trading days preceding the decision (less a 20% discount). The subscription period will run from June 4-18 June 2018, and settlement (payment-delivery) is planned for late July. Shares issued will be entitled to dividends and will rank pari passu with the existing shares from the time of issue.