GEO INSIGHTS

Stellantis has launched the second wave of its "Shares to Win" employee share purchase plan, expanding it to 18 countries and making it available to nearly all of its 230,000 employees worldwide. Following the successful initial wave in 2023, this plan offers employees a 20% discount and a 100% matching contribution up to €1,000 to promote greater ownership and connection to the company. Stellantis aims to grow employee ownership from 1.8% to 5% over the next few years, aligning with its commitment to employee involvement under the “Care” pillar of its Dare Forward 2030 plan.

British digital bank Monzo recently saw employees sell shares to investors, including Singapore's sovereign wealth fund, in a transaction valuing the company at £4.5 billion ($5.9 billion). This follows a March funding round that valued Monzo at £4 billion, marking continued investor confidence as the digital bank reports its first full-year profit and plans expansion in Europe and the U.S. This secondary sale aligns with a broader recovery in European fintech valuations, as seen with Revolut's $45 billion valuation in August.

Uzbekistan is introducing a new initiative, developed by the National Agency for Perspective Projects (NAPP), to reward employees with shares in companies as part of additional incentive programs. Modeled on the ESOP system, the initiative aims to enhance employee engagement, improve labor relations, boost welfare, and develop the domestic capital market. While participation will be voluntary, joint stock companies with over 50% state ownership must implement the plan, and employees using up to one month's salary to purchase shares will enjoy a personal income tax exemption.

OpenAI has compensated its employees generously, with stock compensation ranging from $400,000 to $2,000,000 per employee in the first half of 2024, following a $6.6 billion funding round that valued the company at $157 billion. OpenAI projects explosive revenue growth, aiming to scale from $4 billion in 2024 to $100 billion by 2029, although this aggressive expansion comes with high compute costs that are expected to reach $5 billion this year alone. Given the lucrative compensation and opportunities to cash out equity, several longtime employees have left, capitalizing on their wealth and demand in the tech sector, highlighting challenges OpenAI may face in retaining talent amid mission shifts.

The Investment Association (IA) has released its updated Principles of Remuneration, setting expectations for the 2025 AGM season and beyond, emphasizing long-term value creation, strategic alignment, and improved company-investor consultation. Notable changes include the removal of the 5% dilution limit for discretionary share plans, potential exceptions to the 10% dilution limit for high-growth companies, and the exclusion of all-employee plans from the requirement for shareholder re-approval every 10 years. The IA clarifies that these principles serve as guidelines rather than strict rules, offering companies more flexibility while maintaining alignment with shareholder expectations.