The day after a “social conference” with no immediate effect on purchasing power, it is the sharing of value which is at the center of the Senate debates from today. This is the legislative follow-up to the National Interprofessional Agreement (ANI) signed last February by the social partners. Its transposition was adopted in the National Assembly at the end of June. “A provision of this bill aims to make a value sharing system compulsory from 2025 for companies with 11 to 49 employees. Until now, participation – a percentage of the result – was compulsory only for companies of more than 50 employees. Other mechanisms, such as profit-sharing, were optional”, explains Jean-Philippe Debas, president of Equalis Capital, a management company which advises SMEs and mid-sized companies on shareholding. “Of all the value sharing mechanisms, employee shareholding is the best,” he continues.
In support, the figures from the 8th barometer, recently published by Equalis Capital, based on the analysis of 65 unlisted companies with an FCPE – a company mutual fund – dedicated to employee shareholding. Half of them saw the value of their shares appreciate by more than 14% last year, a performance in line with the 2016-2022 average. Disappointments are of course not excluded: one in five experienced a drop in the share price last year.
Discount and contribution
To cushion the risk taken by their employees, reassure them and encourage them to invest, employers have every interest in using incentives: discount when subscribing – generally up to 30% – or contribution, up to 300%. Added to this is the unilateral contribution: up to 927 euros gross per year paid to all employees and directly invested in the company savings plan. Enough to increase the chances of success. In companies where no incentive is offered, the subscription rate is limited to 35%. It rises to 53% in the presence of aid. But “incentive is not enough, communication is key: you have to go see the employees, explain the plan to them,” insists Matthieu Courbon, general manager of Equalis.
Boost to purchasing power
Financially, the arguments are there. With an average employee investment of around 2,300 euros, the employee shareholders listed by the barometer find themselves with 8,300 euros after 5 years. A big boost to purchasing power. However, the subject is struggling to break through if we are to believe the low number of unlisted employee shareholding FCPEs. The French Association of Financial Management only has 234 at the end of 2022, a drop in the ocean. To encourage the movement, Jean-Philippe Debas has an explosive idea. “We are proposing to go back to 40 hours, paid 35. And the difference would be paid in company shares. I did the calculation: for a person on minimum wage, after 45 years of career, these 5 hours can end to assets of 500,000 euros, with a conservative assumption of a return of 5%. A way to increase productivity and increase remuneration, without undermining French competitiveness. On condition of convincing employees… For the moment, the main obstacle to the spread of employee shareholding is the business leaders themselves, recognizes the boss of Equalis Capital. “They like to control everything and can’t stand not being able to control who will become a shareholder in their company.”