GEO INSIGHTS

Israeli company AppsFlyer is considering an IPO, aiming to raise $300 million with assistance from investment banks like Goldman Sachs, JP Morgan, and Bank of America. Employing around 1,500 people and expecting $400 million in revenue this year, AppsFlyer specializes in technology that tracks the origins of app users. Founded in 2011, the company was last valued at $2 billion in 2020 and has investors including General Atlantic and the Salesforce investment fund.

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.

Ipsen announced the launch of an employee shareholding plan on May 30, 2024, aimed at increasing employee participation in the company's development across 23 countries. The plan allows eligible employees to purchase existing shares at a 20% discount, with the subscription price set at €95.54 per share, capped at 1% of the company's share capital. The shares, offered under Ipsen's Group Savings Plan, will be locked up for five years, with the subscription period running from June 5 to June 19, 2024, and settlement expected by July 30, 2024.

Hong Kong-listed IT companies lead in investing heavily in employee share plans to attract and retain talent, with the sector accounting for 53.5% (HK$38.5 billion) of total investments in 2022, surpassing healthcare and consumer discretionary sectors. Share options and awards are popular types of plans, with options predominant but awards also significant, especially in healthcare. The rise in share plan adoption, now at 83.6% of listed companies, reflects competitive job markets and efforts to foster employee commitment and motivation.

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.

Major banks are increasingly compensating employees with company stock to boost motivation and align their interests with corporate value. Mitsubishi UFJ Financial Group and Sumitomo Mitsui Banking Corp. will implement systems where employees receive shares based on performance evaluations and points awarded, with Mitsubishi UFJ offering shares after a three-year period and Sumitomo Mitsui providing them at retirement. These systems aim to encourage long-term growth and leadership, potentially influencing compensation practices at other banks.

Vox reported that OpenAI pressured departing employees to sign restrictive exit documents by threatening to withhold vested equity, a practice uncommon in Silicon Valley. Despite claims of ignorance by OpenAI leadership, internal documents suggest key executives, including CEO Sam Altman, were aware of these provisions. Following backlash, OpenAI has apologized and committed to changing their policies, including removing nondisparagement clauses and ensuring former employees' equity rights are respected.

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.