GEO INSIGHTS

Elis has launched the "Elis for All" 2024 employee share ownership plan, offering its employees the chance to invest in company shares with a 30% discount and a matching contribution of one share for every 10 subscribed. The plan applies to employees in France and various international subsidiaries, with a minimum three-month seniority requirement. Participants must hold their shares for three to five years, depending on their location, and the offering is part of a broader effort to strengthen employee engagement and ownership within the Elis Group.

On August 22, 2024, IPH Limited announced a share purchase plan (SPP) allowing eligible shareholders in Australia and New Zealand to subscribe for up to $30,000 worth of shares without transaction costs. The SPP aims to raise up to $25 million and supplements a $100 million institutional placement completed on August 23, 2024. Proceeds from the SPP and placement will be used to fund IPH's acquisition of Bereskin & Parr and to reduce debt.

SEBI has issued a notice to One97 Communications, the parent company of Paytm, regarding employee stock options (ESOPs) granted to its MD and CEO, Vijay Shekhar Sharma, during the financial year 2022. Paytm clarified that this is not a new development and that they have been in regular communication with SEBI, making the necessary representations. The company also stated that it believes it is compliant with relevant regulations, and this issue has no impact on its financial results for the year ended March 31, 2024.

Stripe is planning to buy back shares from its employees in a new tender offer, financing it independently as speculation grows about a potential IPO. This follows a recent valuation of around $70 billion, spurred by Sequoia Capital's offer to buy shares from investors, signaling confidence in Stripe's improving financial health, including a reported $615 million in free cash flow last quarter. Despite the rising valuation and industry speculation, the Collison brothers have not indicated any immediate plans for an IPO.

Elon Musk now requires employees at X (formerly Twitter) to submit one-page reports detailing their contributions to access stock grants, tying stock awards to the anticipated impact of their work. This is part of Musk's broader approach of enforcing strict and unorthodox employee policies across his companies, including delayed promotions, mandatory in-office work, and intense work expectations. Musk's leadership style, characterized by high demands and frequent layoffs, reflects his personal work ethic and has led to significant turnover and contentious relationships with labor unions.

Publicly-traded companies often exclude stock-based compensation from EBITDA and cash flow to present a more favorable financial picture, even though this practice dilutes shareholder value. Snowflake, a data warehouse provider, exemplifies this by reporting high levels of stock-based compensation—43% of its revenue in the recent quarter—while simultaneously announcing a $2.5 billion share buyback plan that fails to offset the dilution caused by new equity issuances. Despite these tactics, Snowflake remains unprofitable, with slowing revenue growth, leading to investor dissatisfaction and a significant drop in its stock price.

RA Information Systems has transitioned to an employee-owned business through an Employee Ownership Trust (EOT), transferring 100% of the company's shares to the trust. This move is aimed at preserving the company's independence, recognizing the contributions of its employees, and maintaining the founders' legacy and the company's culture. The founding family will remain actively involved, ensuring stability, while the new ownership structure aligns with the company's long-term vision and commitment to its employees and clients.

Revolut, now Europe's most valuable private tech company with a $45 billion valuation, recently conducted a secondary share sale, enabling its employees to gain $500 million in liquidity. The company, which has grown rapidly with $2.2 billion in 2023 revenue and securing banking licenses in Mexico and the UK, is predicting significant growth in 2024, including an increase to 50 million users. Speculation is rising about a possible stock market debut, with Revolut potentially considering a New York listing.