Italian and French Stellantis Workers Acquire Collective Shares Valued at $71 Million

22 Dec, 2023

Italian and French Stellantis Workers Acquire Collective Shares Valued at $71 Million

Stellantis (STLAM.MI) disclosed that workers in Italy and France have subscribed to 4.4 million shares of the automaker, totaling 65 million euros ($71.4 million). This move is part of a corporate initiative aiming to encourage employees to become investors, fostering performance and easing cost-of-living pressures.

The company, known for brands like Fiat, Peugeot, and Citroen, launched this plan earlier this year, offering preferential buying conditions to over 85,000 employees in Italy and France. It intends to extend this scheme to an additional 242,000 eligible employees in 18 countries next year, including the United States and Germany, followed by a global rollout in 2025.

Xavier Chéreau, Chief HR & Transformation Officer, expressed satisfaction with the scheme's success, viewing it as a testament to employees' belief in the company's sustainable future. Chéreau added, "Our goal is to enable as many valued employees as possible to become Stellantis shareholders in the near future."

The plan is set to be available next year for 55,000 Stellantis employees in the U.S. and 14,000 in Germany. Initially targeted at approximately 43,000 individuals in Italy and 42,000 in France, the program was active from November 13 to 30.

Employees collectively invested 47 million euros, supplemented by an additional 18 million euros from the company itself, according to Stellantis. Around 22% of eligible employees subscribed for the shares, with an average individual investment of about 2,470 euros.

In France, 31% of eligible Stellantis employees participated in the scheme, while in Italy, 13% took part in what was the country's inaugural program of this nature for former Fiat Chrysler staff.

The shares were purchased at a discounted price of 14.52 euros each, representing a 20% reduction, equivalent to up to 25% of their current annual salary. Stellantis augmented each employee's investment by contributing up to 1,000 euros.

Post the initial phase, employees now collectively hold 1.8% of the company's share capital. Chéreau envisions elevating this share to 5% in the medium term. Stellantis, formed in early 2021 via the merger of Fiat Chrysler and PSA (Peugeot maker), continues to make strides in employee ownership and engagement.