GEO INSIGHTS

Camurus AB announced that 142,300 options from its ESOP 2021/2024 program were exercised in September 2024, generating SEK 37.5 million through the issuance of shares at SEK 263.50 per share. Employees, including the CEO, participated in cashless exercises, selling shares to cover the cost of subscription and taxes. The exercise period for the stock options program will conclude on December 16, 2024.

Capgemini has launched its 11th global employee share ownership plan (Esop), covering 97% of its workforce, including most of its 175,000 employees in India, as part of efforts to align employee interests with company performance. The Esop, offering up to 2.7 million shares (1.56% of outstanding shares), aims to sustain employee ownership at around 8% of the company's share capital, with investment options protecting employees against potential losses during the non-tradable period. Despite a 2.6% revenue decline in H1 2024, Capgemini maintained a 12.4% operating margin and increased organic free cash flow, reinforcing its financial stability as it rolls out this initiative.

Enterprise Management Incentive (EMI) schemes provide significant tax benefits for trading companies with gross assets of £30 million or less, allowing them to recruit and retain employees through share options without incurring income tax or national insurance contributions upon grant or exercise. Companies can grant options valued up to £250,000 per individual, with a total limit of £3 million, while ensuring that qualifying employees work at least 25 hours per week or 75% of their time for the company. However, companies must navigate potential pitfalls, such as changes in control or trading activities, and adhere to strict reporting requirements to maintain the favorable tax treatment of EMI options.

New Zealand's tax exempt thresholds for employee share schemes are set to increase under the proposed Taxation Bill, aimed at adjusting for inflation and boosting support for startups, particularly in the tech sector. The changes would raise the maximum value of shares offered to employees from $5,000 to $7,500 annually, and the employer's maximum discount from $2,000 to $3,000. These adjustments are intended to help early-stage companies recruit and retain talent, aligning employee incentives with company growth and contributing to broader economic recovery.

New Zealand's government is proposing to increase tax-exempt thresholds for employee share schemes as part of the Taxation Bill for 2024-25, benefiting startups and tech companies by adjusting for inflation. Under the proposed changes, the maximum annual value of shares provided to employees would rise from $5,000 to $7,500, and the maximum discount on shares would increase from $2,000 to $3,000, effective April 1, 2025. This initiative is aimed at supporting recruitment and growth for early-stage companies, aligning employee incentives with company goals, and ultimately boosting the economy.

AXA has launched its 2024 annual employee share offering, known as Shareplan 2024, across 40 countries for over 110,000 employees. Employees will have the option to participate in either a Classic offer or a Guarantee Plus offer, with shares offered at a discount to the reference price. The share subscription period will take place from November 4 to November 8, 2024, and the capital increase is expected to occur on December 5, 2024, with the new shares being listed on Euronext Paris.

Brazil's Superior Court of Justice (STJ) ruled that stock options granted to company directors, officers, and employees are not considered compensation for income tax purposes, but are instead subject to capital gains tax upon the sale of the shares. This decision was made under the 'repetitive appeal' mechanism, setting a precedent for tax authorities like the Federal Revenue Service. The ruling counters the Federal Revenue's argument that stock options should be taxed as indirect compensation when exercised, with the court affirming they are a commercial contract.

AXA has launched its annual employee share offering, "Shareplan 2024," allowing over 110,000 employees in 40 countries to participate through two plans: the Classic offer and Guarantee Plus offer. Employees can purchase shares at a discount, with the Classic offer providing shares at 80% of the reference price and Guarantee Plus at 93.6%, along with a guaranteed return through AXA’s partner bank. The maximum capital increase under this offering is around €135 million, and the new shares will be eligible for dividends from January 1, 2024.

Capgemini has launched its eleventh Employee Share Ownership Plan (ESOP), offering approximately 97% of its employees the opportunity to subscribe to up to 2,700,000 new shares, maintaining employee shareholding at around 8% of the company’s capital. The subscription period runs from September 12 to October 1, 2024, followed by a subscription/revocation period in November, with shares offered through leveraged and guaranteed formulas to protect employees from potential losses. To neutralize the dilutive effect of the capital increase, Capgemini's Board has authorized a share buyback within the next 12 months.