AMSTERDAM - Stellantis N.V. (NYSE:STLA) (NYSE: STLA / Euronext Milan: STLAM / Euronext Paris: STLAP), a leading global automaker, has announced the expansion of its employee share purchase plan, 'Shares to Win', to cover nearly its entire workforce worldwide. This move follows the initial success of the program in France and Italy and will now be available to more than 230,000 employees.
The 'Shares to Win' program allows Stellantis employees to buy company shares at a 20% discount on the reference share price, which is the average closing price on the Milan stock exchange from September 30 to October 25, 2024. Additionally, the company offers a matching contribution of 100% of the personal amount invested by the employee, up to a maximum of €1,000.
Stellantis launched the second phase of the program today, with the subscription period running from November 5 to November 14, 2024, for up to a total of 14 million shares. The initiative is part of the company's ambition to have 5% of its capital held by employees in the coming years, a significant increase from the current 1.8%.
Xavier Chéreau, Stellantis Chief HR & Transformation Officer, stated, "We believe that when our colleagues, who work to build the business become shareholders, both our employees and the business thrive." He emphasized that the share purchase program is designed to foster a greater sense of ownership and belonging among employees and reflects the company's commitment to sharing its performance with its workforce.
Stellantis was founded in early 2021 and has since been dedicated to involving its employees in the company's success as part of its 'Dare Forward 2030' strategic plan. This plan aims to position Stellantis as a carbon net zero mobility tech company by 2038, while creating value for all stakeholders.
The information in this article is based on a press release statement from Stellantis.
In other recent news, Stellantis, the multinational automaker, has announced significant changes in its management structure, including the planned retirement of CEO Carlos Tavares in 2026. The company has also revised its profit forecast for 2024 downward, indicating potential cuts to dividend payouts and share buyback programs in the coming year. These adjustments are in response to pricing challenges in North America and high dealer inventories, as noted by RBC analyst Tom Narayan.
Stellantis has also partnered with Segway-Ninebot through its service and parts division, Mopar, to distribute Segway products via select Chrysler, Dodge, Fiat, Jeep, and Ram dealers in North America. This strategic collaboration aims to offer customers a diverse mobility experience, aligning with both companies' commitment to innovation and sustainability.
The automaker is also nearing approval from the Italian government for the sale of a majority stake in its robotics division, Comau, to private equity firm One Equity Partners. This move is a significant step in Stellantis' plans to divest from Comau.
Meanwhile, the United Auto Workers union at Stellantis's Los Angeles parts distribution center has voted to authorize a strike, potentially affecting operations at the center. RBC Capital has downgraded Stellantis stock due to concerns about profit warnings and pricing pressures. Despite these challenges, Stellantis recently announced a $406 million investment in three Michigan facilities to bolster its focus on electric vehicle production.
InvestingPro Insights
As Stellantis expands its employee share purchase plan, it's worth noting some key financial metrics and insights from InvestingPro that provide context to this strategic move.
According to InvestingPro data, Stellantis currently has a market capitalization of $37.24 billion USD. The company's stock is trading at a low Price / Book multiple of 0.42, which aligns with one of the InvestingPro Tips indicating that Stellantis is "Trading at a low Price / Book multiple." This valuation metric could make the discounted share purchase opportunity even more attractive to employees.
Furthermore, Stellantis boasts a high dividend yield of 9.64%, which is particularly relevant to the employee share purchase plan. An InvestingPro Tip highlights that the company "Pays a significant dividend to shareholders," potentially making the stock ownership more appealing to employees looking for income in addition to potential capital appreciation.
It's also noteworthy that Stellantis "Holds more cash than debt on its balance sheet," according to another InvestingPro Tip. This strong financial position may provide employees with additional confidence in the company's stability as they consider participating in the share purchase program.
These insights from InvestingPro offer a broader financial context to Stellantis' employee ownership initiative. For investors and employees alike, InvestingPro provides 16 additional tips for Stellantis, offering a more comprehensive analysis of the company's financial health and market position.
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