Michelin launches employee share plan

A job well done may be its own reward, but sharing the resulting profits benefits both employee and employer. This seems to be a principle that Michelin understands well, as the tyre maker has announced its ‘Bib’Action’ employee share ownership plan. Open to 120,000 members of the Michelin workforce in 46 countries, Compagnie Générale des Établissements Michelin says this latest initiative illustrates its 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 stabilises the company’s capital,” says 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 14 to 29 September 2022. Michelin’s managing chairman set the subscription price at €19.96 on 12 September. The subscription price is equal to a reference price that corresponds to the average of the opening prices quoted for Michelin shares on Euronext Paris over the preceding 20 trading days, minus a 20 per cent discount.

Michelin proposes the following plan:

• 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 per cent 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 Michelin shares may exercise their voting rights at shareholder meetings.

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.