EUROPEANCHAPTER

In the UK, there is broad support across political parties for encouraging employers to offer shares to employees, with various statutory and non-statutory arrangements available. The Liberal Democrats propose giving employees in listed companies with over 250 employees the right to request shares, aligning with the Share Incentive Plan (SIP), while Labour has previously suggested an "Inclusive Ownership Fund" for employee benefits. The Conservative Party, though not explicitly detailing future plans, has recently enhanced the Company Share Option Plan (CSOP) and launched consultations on several related topics.

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.