Employee shareholding is making a comeback on the Paris stock exchange. The French Federation of Associations of Employee and Former Employee Shareholders, the FAS, has relaunched an index bringing together SBF 120 companies where part of the capital is in the hands of employees.
Do you want to invest money in the stock market, but in any company? Good news: the Euronext FAS IAS index is making its return to the Paris stock exchange. It allows you to bet on 29 companies from the SBF 120. The common point of these companies: they practice employee shareholding (more than 3% of the capital is in the hands of the latter, Editor’s note).
As a reminder, employee shareholding allows a company to associate its employees with its capital through different tools (capital increase reserved for employees, sale of shares in your company to employees, distribution of free shares, stock options …)
“The social reference index on value sharing”
As noted in an article in Echoes, the average employee participation in capital is only 1.7% within the SBF 120 (excluding CAC 40), and 3.6% for member companies of the flagship Parisian index. However, these averages hide still significant disparities between leaders like Bouygues and Eiffage, with more than 20%, and groups like LVMH, Publicis or Kering, which have less than 0.5% employee shareholding.
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This is not the first time that employee shareholding has entered the stock market. First launched in 1999, the Euronext FAS index had disappeared in recent years, the time to comply with European regulations on stock market indices (BMR). This new version will be updated annually, based on data collected in company annual reports.
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The Euronext FAS index aims to be “the benchmark social index on value sharing, a valuable tool for measuring corporate social responsibility”, underlines Loïc Desmouceaux, president of the FAS, to Echoes.
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