EUROPEANCHAPTER

Gallup reports that 22% of Americans in 2023 fear job displacement due to AI and emerging technologies, up from 13% in 2017. Although upskilling is crucial for adapting to technological changes, low employee engagement hampers the desire to learn new skills, suggesting that expanding employee ownership could motivate workers by giving them a stake in their company's success. Amid rising income inequality and cost of living, employee ownership offers a bipartisan solution, enhancing engagement and financial security while encouraging upskilling to counteract labor market polarization.

TotalEnergies has approved significant initiatives to enhance employee shareholder ownership, including allocating 100 shares to each of its 100,000 global employees, representing a historic gesture on the occasion of the company's 100-year anniversary. The company also plans a capital increase with a 30% discount for employees, reinforcing its commitment to employee shareholding, which already ranks it as the top European firm in this regard. With over 65% of its employees already shareholders, TotalEnergies aims to further solidify its value sharing policy, emphasizing sustainability and employee engagement.

Former HR director Jane Davies claimed that Post Office CEO Nick Read's persistent demands for a pay rise and threats to resign consumed her work, with emails from Read describing his bonus situation as intolerable. Despite earning £2.28m since 2020, including a £455,000 bonus for 2021/22, Read's demands were a distraction from addressing compensation for victims of the Horizon scandal. Experts suggest formalized policies, including involvement from HR, trade unions, and remuneration committees, to mitigate conflicts arising from executive pay negotiations.

Boeing's CEO Dave Calhoun and former Executive Vice President Stan Deal, despite announcing their departures amid scrutiny over manufacturing flaws, stand to collect a combined $45 million in compensation. They won't likely face internal clawback policies since they weren't fired due to quality management issues. However, shareholders are expected to approve a proposal tying executive compensation to safety improvements, as Boeing faces intense scrutiny following incidents like a door panel detaching from a 737 Max 9 jet. The company's compensation structure is being retooled, and leadership changes are expected to address concerns and improve performance.

GTT announces the launch of its international employee shareholding plan, offering nearly 720 employees the opportunity to become shareholders. The plan, available in several countries, allows employees to subscribe to GTT shares at a discounted price of 111.20 euros, subject to a five-year lock-up period. Shares will be subscribed through direct shareholding or employee shareholding funds, with the subscription period running from April 25 to May 14, 2024, and settlement-delivery scheduled for June 18, 2024.

Imagine getting a job offer from your dream company, but they refuse to disclose the currency of your salary—this is how the startup equity compensation market often operates. Employers offer stock options or RSUs without revealing the total number of company shares, leaving employees uncertain about their actual ownership stake. Current regulations do not require startups to provide comprehensive valuation information, leading to an overestimation of equity grants and undermining the high-tech labor market's competitiveness.

Research by Zest indicates that a majority of employees, especially younger ones, desire increased investment in sustainability from their employers, with over half expressing interest in sustainable benefits like electric vehicles and green pensions. Despite this, a significant portion of younger workers feel their employers lack concern for sustainability, which impacts their morale. Employers are also observing a growing demand for sustainable benefits, highlighting the importance of adapting to these changing employee expectations to improve overall employee satisfaction and attract and retain talent.

EY's 2024 Mobility Reimagined survey reveals that only 25% of employers have fully developed mobility functions, despite 64% of employees expressing a higher likelihood of staying after long-term global assignments. Companies face increasing cross-border risks, with 71% of respondents noting heightened challenges, including tax/regulatory and data privacy risks, highlighting the need for robust policies and integration of mobility functions to attract and retain top talent and ensure business resilience.

Australia is trailing behind the US and advanced European economies in implementing employee share schemes, as revealed by the first global survey spearheaded by tax partner Shaun Cartoon and lawyer Eileen Liu. Conducted by a team of specialists from Arnold Bloch Leibler, Baker McKenzie, KPMG, and Tapestry Compliance, along with issuers and academics, the survey measured operating environments across 26 countries. Australia's complex tax rules and regulatory constraints on unlisted companies have hindered the scaling up of share plans, with tax incentives playing a significant role in decision-making for companies.