Capgemini opens Esop plan to 97% employees, including 175k staff in India

This is the eleventh edition of the IT major's employee share ownership plan after the previous one from 2019 is set to expire at the end of the year

Global technology major Capgemini has announced the launch of its eleventh employee share ownership plan (Esop), which is available to 97 per cent of its employees globally, including a majority of its 175,000 employees in India. This initiative is part of the company’s effort to align employee interests with its development and performance. The Esop will result in a capital increase reserved for employees, offering up to 2.7 million shares, equivalent to 1.56 per cent of Capgemini’s total outstanding shares, the company said in a release earlier this week.

The programme aims to sustain employee ownership at around 8 per cent of the company’s share capital, as the previous Esop from 2019 is set to expire by the end of this year.

Esop reservation period is open till Oct

The reservation period for subscribing to Capgemini shares will be open from September 12 to October 1, 2024. Following this, a subscription and revocation period will take place from November 12 to 14, 2024. Employees participating in the Esop will benefit from leveraged and guaranteed investment options, protecting against any potential loss during the shares’ non-tradable period.

The subscription price for the shares will be determined on 7 November, with the capital increase finalised by 19 December 2024. Voting rights under the plan will be exercised by different parties, depending on the structure — whether by the employees directly, an FCPE (French company employee investment fund), or the financial institution that structured the offering.

As part of this new share ownership plan, Crédit Agricole Corporate and Investment Bank, the financial institution managing the offer, will engage in hedging transactions. These transactions, designed to protect employees and manage market risks, will include the purchase and sale of shares, as well as the purchase of call options.
 

Capgemini H1 CY24 performance

In the first half of calendar year 2024, the Paris-headquartered IT firm saw a 7 per cent drop in its offshore headcount and a 2 per cent drop in its onshore headcount bringing the total number of employees to 145,800 onshore and 194,600 offshore.

During this period, Capgemini reported 11.138 billion euros in revenue, marking a 2.6 per cent decline at constant exchange rates. However, the company maintained a stable operating margin of 12.4 per cent and saw an increase in organic free cash flow to 163 million euros.

Capgemini has revised its full-year growth outlook downward, projecting a slight decline of -0.5 per cent to -1.5 per cent, citing currency fluctuations. Despite the adjustment, the company remains optimistic, emphasizing its strategic partnerships and a strong focus on generative AI.

Earlier this year, Capgemini also announced a 2 billion euros AI investment in India over three years, this also includes training 100,000 employees by mid-2024.