Compagnie Générale des Établissements Michelin (hereinafter the “Company”) today announced the launch of its new employee share ownership plan, open to 120,000 employees in 46 countries[1]. In the spirit of the plans carried out since 2002 and the February announcement that such plans would be rolled out every year, this latest initiative illustrates Michelin’s determination to have its employees collectively rank among its main shareholders.
“Employee share ownership serves two important purposes. First, it demonstrates our confidence in and commitment to our Group. Second, it helps strengthen a core group of shareholders and further stabilizes the company’s capital” said Yves Chapot, General Manager and Chief Financial Officer of Michelin. “For these two reasons, we hope that employee share ownership will develop significantly in the coming years.”
The subscription period for the share offering will run from September 14 to September 29, 2022 (inclusive). On September 12, 2022, the Managing Chairman set the subscription price at €19.96. The subscription price is equal to 80% of the reference price (corresponding to the average of the opening prices quoted for Michelin shares on Euronext Paris over the 20 trading days preceding said date), i.e., the reference price minus a 20% discount.
The plan proposed by Michelin is as follows:
- Up to the first 15 shares subscribed, the Group contributes one free share for every share subscribed.
- From 16 to 50 shares subscribed, the Group contributes one free share for every five shares subscribed. The Group’s maximum contribution is set at 22 free shares.
- Beyond the 50th share subscribed, no further free shares are contributed by Michelin but the 20% discount is maintained.
Each employee may acquire up to 2,000 Michelin shares under the plan, within the legal limit of a maximum subscription amount pursuant to the local country regulations.
Employees who acquire shares in the Company may exercise their voting rights at Michelin Shareholders Meetings.
[1]The 2022 employee share ownership plan is open to all employees, subject to local restrictions in the following countries:
Argentina, Australia, Austria, Belgium, Brazil, Canada, Chile, China (including Hong Kong), Colombia, Czech Republic, Denmark, Finland, France, Germany, Greece, Hungary, India, Indonesia, Ireland, Italy, Japan, Luxembourg, Malaysia, Mexico, Netherlands, Nigeria, Norway, Peru, Poland, Portugal, Romania, Serbia, Singapore, Slovakia, South Africa, South Korea, Spain, Sri Lanka, Sweden, Switzerland, Taiwan, Thailand, Turkey, United Arab Emirates, United Kingdom and United States.