GEO INSIGHTS

Trafigura proposed share clawbacks for breaches of confidentiality and its code of conduct, as revealed in a letter from CEO Jeremy Weir, following a premature disclosure of losses from its Mongolian oil operations. The clawback policy applies to both current and former employees and could prevent ex-employees from receiving payment for their shares. The proposal is part of regular governance review and is not linked to specific personnel changes or jurisdictions, although recent high-level departures from the company have been noted.

Employees often underestimate the wealth-building potential of their equity compensation, viewing it as a minor benefit rather than a serious investment due to its lack of immediate cost. This perception, coupled with a lack of transparency and understanding about liquidity options, can lead to challenges in realizing the value of these holdings. Employers need to improve education and facilitate liquidity opportunities, potentially through secondary market platforms, to enhance the perceived value of equity compensation and support employees in maximizing their financial benefits.

Civitta, in collaboration with Google, has released a comprehensive report on the Baltic startup ecosystem, highlighting its significant economic impact but noting challenges in scaling due to funding and talent shortages. The report emphasizes that while the startup sector is growing, only a few companies achieve substantial success, and leveraging stock options could help attract and retain top talent. Additionally, the report underscores the importance of persistence in securing funding and engaging with EU policy to facilitate growth and global expansion for Baltic startups.

Boku Inc. has announced an Extraordinary General Meeting (EGM) on September 11, 2024, to seek shareholder approval for a new executive share plan. The plan, designed to reward exceptional performance, will grant restricted share units to the executive team, with vesting conditions tied to the company's stock price performance over the next several years. Shareholders can participate in the EGM via teleconference and are encouraged to submit questions in advance, with further details available on the company's website.

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.