GEO INSIGHTS

Generali has announced a share buyback program as part of its Long Term Incentive Plan 2023-2025, approved by shareholders on April 28, 2023, targeting a maximum of 11.3 million shares. The buyback, managed by Citigroup Global Markets Europe AG, will start on May 22, 2024, and conclude by August 2024, with a maximum total value of €300 million. Generali currently holds 17,059,872 treasury shares, and will conduct the buyback exclusively on the Euronext Milan market, adhering to regulations to ensure equal treatment of shareholders.

In the competitive tech sector, Qualified Employee Stock Options (QESOs) offer substantial tax advantages for Swedish companies and their employees, making them an appealing choice despite their complex implementation. QESOs provide tax-free grants for employees and reduced social security contributions for companies, contrasting sharply with non-qualified stock options that incur higher taxes and social security costs. While managing QESOs involves strict eligibility requirements and compliance conditions, the potential benefits make them a valuable tool for attracting and retaining top talent in Sweden.

Lawyers at McCann FitzGerald recommend employers reconsider offering a Revenue-approved Save As You Earn (SAYE) scheme due to its risk-free, tax-efficient savings and share purchase options for employees, which can enhance engagement and retention. Despite the decline in SAYE savings carriers in Ireland post-Brexit, a new licensed provider is expected to be announced soon. SAYE schemes allow employees to save between €12 and €500 monthly for three to seven years, with the option to buy company shares at a discounted rate, and if they choose not to buy, their savings are returned tax-free.

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.

Morgan Stanley at Work's fourth annual State of the Workplace Financial Benefits Study reveals a growing demand for equity compensation among employees and HR leaders at both public and private companies. The study highlights that equity compensation is a top driver of employee engagement and retention, with 95% of HR leaders and 80% of employees recognizing its motivational impact. However, awareness and education gaps persist, as only 38% of employees are aware of these benefits, indicating significant opportunities for companies to enhance their equity compensation education programs.

When U.S. stock markets reopen after Memorial Day, they will implement a significant change: reducing the settlement period for securities transactions from two days (T+2) to one day (T+1). This transition, effective May 28, 2024, aims to reduce counterparty risk and increase automation in post-trade processes but will require updates to systems and processes and may introduce new risks. Major financial institutions and stock exchanges are preparing for this change, with concerns about potential foreign exchange (FX) risks for international investors due to the compressed timeframe and time zone differences.

Revolut, the UK's leading fintech startup, plans to allow employees to sell approximately £400 million worth of shares later this year, managed by Morgan Stanley. Despite its rapid growth and a $33 billion valuation peak in 2021, Revolut's valuation has recently dropped to $25.7 billion amid challenging market conditions and difficulties securing a banking license. The planned secondary sale aims to boost Revolut's value and facilitate further growth, while facing competition from rival Monzo, which has shown significant fundraising success and growth.

Jennifer Sun, Head of Plan Managers Asia at Computershare, highlights how Hong Kong-listed companies are increasingly using equity as employee remuneration to attract top talent. Computershare's research indicates that 83.6% of these companies now include an employee share plan, a significant increase from 66.1% a decade ago, with HK$72 billion invested in 2022. Employee share plans, including share options and share awards, are popular across various sectors, particularly IT and healthcare, and are seen as essential for aligning employee and company goals and improving retention.

Stablecoin issuer Circle is moving its legal base from Ireland to the United States, as confirmed by recent filings with the High Court of the Republic of Ireland. This move may be linked to Circle’s potential initial public offering (IPO) plans, despite the U.S.'s higher tax rates compared to Ireland. Circle, which confidentially filed for an IPO in January, issues the USDC stablecoin and counts major financial firms like Fidelity and BlackRock among its investors.