Capgemini Announces New Esop Plan For Employees

The Esop will offer up to 2.7 million shares to the employees, coming up to 1.56 per cent of the company’s overall outstanding shares, it said via a release this week

Through the initiative, the firm plans to maintain employee ownership at nearly 8 per cent of the firm’s share capital.

Source : Capgemini

Tech giant, Capgemini, announced an employee share ownership plan (Esop), applicable for 97 per cent of its workforce globally, including a majority of the firm’s 175,000 employees in India. The company launched the eleventh Esop as part of its efforts to keep employee interests in alignment with its development and performance.

The Esop will offer up to 2.7 million shares to the employees, coming up to 1.56 per cent of the company’s overall outstanding shares, it said via a release this week. Employees will benefit from a hike in capital reserved for them via the Esop, reported Business Standard.

Through the initiative, the firm plans to maintain employee ownership at nearly 8 per cent of the firm’s share capital. The earlier Esop from 2019 is set to expire by this year’s end. Employees will be eligible to subscribe to the company’s shares from September 12 to October 1, 2024. After this, a subscription and revocation period will occur from November 12-14, 2024.

The Esop will provide employees benefits from leveraged and guaranteed investment options, shielding them against any possible loss during the shares’ non-tradable period. 

The subscription price for the shares will be decided on November 7, 2024, while the capital hike will be finalised by December 19, 2024. Crédit Agricole Corporate and Investment Bank is managing the offer and will engage in hedging transactions as part of the plan.

The firm reported a 7 per cent decline in its offshore workforce in the first half of the current calendar year, while its onshore headcount slipped by 2 per cent. This rendered the overall employees of the firm onshore to 145.800 and offshore to 194,600.

The company also clocked €11.38 billion in revenue during the period under review, decreasing 2.6 per cent at constant exchange rates. However, its operating margin remained stable at 12.4 per cent and its organic free cash flow surged to €163 million.