EUROPEANCHAPTER

Despite a slight reduction in the gender pay gap in the UK, a PwC report indicates it will take 45 years to close at the current rate of change. The mean hourly pay gap dropped from 12.2% to 11.8% between 2022-23 and the median pay gap fell from 9.2% to 9.1%, but since 2017, the average gender pay gap has only reduced by 1.6%. Experts stress the need for immediate action from employers to address systemic barriers and promote gender pay equity, while acknowledging that societal factors also contribute to the persistence of the gap.

Fast fashion giant Shein is considering an IPO on the London Stock Exchange, potentially valuing the company at $66 billion (£51.7 billion). Known for its cheap clothes and social media campaigns, Shein has faced criticism over environmental practices and labor conditions. The company, which may file the necessary paperwork this week, is seeking a UK listing after encountering regulatory hurdles in the US, aiming to boost its green credentials and expand its resale platform to the UK and Germany.

L’Oréal has launched its fourth Employee Share Ownership Plan, allowing employees in 63 countries to purchase shares and participate in the company's growth. The plan, introduced in 2018, has seen over 37,000 employees participate, reflecting their commitment and confidence in L’Oréal's future. Employees can buy shares at a discounted price with an employer contribution, and the shares will be blocked for five years, with the subscription period running from 5 June to 19 June 2024.

Daniel Křetínský, known as the Czech Sphinx, is poised to become the first private owner of Royal Mail in its 500-year history, after the board of International Distribution Services (IDS) agreed to his £3.57bn takeover bid. Despite Royal Mail's financial struggles, Křetínský believes he can modernize and restore profitability to the company, aiming to make it one of Europe's largest logistics firms. The deal, which must still be approved by IDS shareholders and potentially scrutinized under the National Security and Investment Act, includes a series of five-year commitments to maintain Royal Mail's universal service, branding, and union recognition.

The gender disparity in access to company share schemes has significantly increased, with men now four times more likely than women to participate, according to analysis by Vestd. This disparity is attributed to the existing gender pay gap, where higher earners, predominantly men, are more likely to be included in executive share incentive plans, and women, earning less on average, face challenges in saving and purchasing shares. HR experts suggest implementing initiatives to support women advancing to higher-paying roles, promoting equity in compensation programs, and educating employees about the benefits of share schemes to address this inequality.

Revolut plans to allow employees to cash in shares worth US$500 million, with Morgan Stanley likely coordinating the process later in 2024. This transaction, aimed solely at employees without raising new capital, seeks to maintain Revolut's US$33 billion valuation from its 2021 funding round, bolstered by a doubling of FY2023 revenue to £1.7 billion and a growing customer base exceeding 40 million. As Revolut awaits its full UK banking license, it continues to expand its offerings, including launching an eSIM and advanced AI fraud protection, underscoring its confidence in achieving its high valuation.