GEO INSIGHTS

Boeing's CEO Dave Calhoun and former Executive Vice President Stan Deal, despite announcing their departures amid scrutiny over manufacturing flaws, stand to collect a combined $45 million in compensation. They won't likely face internal clawback policies since they weren't fired due to quality management issues. However, shareholders are expected to approve a proposal tying executive compensation to safety improvements, as Boeing faces intense scrutiny following incidents like a door panel detaching from a 737 Max 9 jet. The company's compensation structure is being retooled, and leadership changes are expected to address concerns and improve performance.

GTT announces the launch of its international employee shareholding plan, offering nearly 720 employees the opportunity to become shareholders. The plan, available in several countries, allows employees to subscribe to GTT shares at a discounted price of 111.20 euros, subject to a five-year lock-up period. Shares will be subscribed through direct shareholding or employee shareholding funds, with the subscription period running from April 25 to May 14, 2024, and settlement-delivery scheduled for June 18, 2024.

Research by Zest indicates that a majority of employees, especially younger ones, desire increased investment in sustainability from their employers, with over half expressing interest in sustainable benefits like electric vehicles and green pensions. Despite this, a significant portion of younger workers feel their employers lack concern for sustainability, which impacts their morale. Employers are also observing a growing demand for sustainable benefits, highlighting the importance of adapting to these changing employee expectations to improve overall employee satisfaction and attract and retain talent.

In January 2024, a Delaware Court rescinded Tesla's 2018 option grant to Elon Musk, valued at $56 billion, due to breaches of fiduciary duty in awarding the grant. Now, Tesla seeks shareholder ratification of the grant to reinstate it, addressing disclosure deficiencies and procedural issues highlighted by the court. However, the legal strategy faces uncertainty, with potential challenges and implications for shareholder approval under Delaware law.

EY's 2024 Mobility Reimagined survey reveals that only 25% of employers have fully developed mobility functions, despite 64% of employees expressing a higher likelihood of staying after long-term global assignments. Companies face increasing cross-border risks, with 71% of respondents noting heightened challenges, including tax/regulatory and data privacy risks, highlighting the need for robust policies and integration of mobility functions to attract and retain top talent and ensure business resilience.

This article advocates for greater democratization of workplaces, highlighting the absence of democratic rights for workers despite their significant time spent in these environments. It discusses the potential benefits of enabling employees to have more control and ownership in their workplaces, citing examples of successful employee-owned firms in Canada and abroad. The article also outlines various public policy options, including the creation of Employee Ownership Trusts, to facilitate the expansion of democratic employee ownership in Canada and address barriers such as limited access to capital.

Research indicates that while board gender quotas can enhance female representation at the board level, they do not increase the number of women appointed to executive positions within organizations, as seen in India's case. Instead, appointing women to positions of authority on boards, such as executive directors, positively impacts the careers of women at lower levels, potentially due to their influence in senior management recruitment. The study underscores the need for policies that focus on increasing women's representation across all levels of senior management, rather than solely targeting board appointments, as highlighted by the forthcoming Women on Boards directive in the European Union.

The Menke Group facilitated AV Construction's transition to becoming 100% employee-owned through an Employee Stock Ownership Plan (ESOP), allowing employees to benefit from company ownership and ensuring a strong succession plan. ESOPs, which incentivize and reward employee productivity, offer advantages to both employees and company owners seeking to maintain independence and community presence. With ESOPs particularly effective in companies reliant on human capital, AV Construction aims to provide excellent retirement benefits while maintaining its commitment to healthcare development excellence.

The US IPO market, although challenging over the past two years, shows signs of improvement in 2024 as interest rates stabilize and stock valuations recover. Despite geopolitical uncertainty, IPO proceeds reached US$23.94 billion last year, a marginal increase from 2022, with the market showing resilience and attracting cross-border listings. Technology and biotech sectors are driving IPO activity, buoyed by strong investor support and market performance, while ongoing geopolitical tensions and market volatility remain challenges for potential issuers. However, a positive start to the year and pent-up demand may encourage more companies to pursue IPOs in 2024.