Take part in Legrand’s first international employee stock purchase plan and have a say in the future of the company.
The employee stock purchase plan gives you, as an employee, the opportunity to further increase your involvement in the future of the company by investing in Legrand shares with favorable terms.
What are the benefits of the plan?
- You will receive a 20% discount on the reference price of the stock.
- Legrand will match 100% of your contribution, up to a maximum of €600 (which is approximately $650).
Let’s illustrate these benefits with an example.
If the reference price is €88, the subscription price with the 20% discount is €70.40.
If you invest €600, Legrand will match your investment with a €600 matching contribution. Your investment in the employee stock purchase plan will total €1,200.
You can only buy whole shares of stock, not partial shares, so when you type in your requested euro amount in the enrollment tool, your investment will be rounded down to the nearest whole number of Legrand shares.
In our example, you will submit a request to purchase 17 shares. [on screen => €1,200 / €70.40 = 17.04 shares, rounded down to 17 shares]
And your actual investment in the plan, made up of your contribution and the company match, will be €1,196.80. [on screen => 17 shares x €70.40 = €1,196.80]
Thus, with your contribution of €598.4 and the discount and company match, your investment in Legrand shares will total €1,496. [on screen => 17 shares x €88 = €1,496]
[on screen at the bottom => To find out more about the taxes that apply to the plan, please refer to the U.S. supplement , available at https://employeeshareplan.legrandgroup.com.]
But that’s not all...
Legrand is offering three flexible payment options to help you pay for your contribution:
- You can make a one-time payment by check in April
- You can elect to have the amount deducted from your pay over 12 months beginning in June, or
- You can elect a combination of a one-time check and payroll deductions over one year.
Legrand will also pay for the account maintenance and management fees.
Like any shareholder, you will earn any dividends that are paid on the shares.
Please note before you invest
Your investment mirrors the Legrand share price, which may increase or decrease.
Your investment carries a foreign exchange risk. As the Legrand share is listed in Euros on the Paris Stock Exchange, the value of your investment will vary based on fluctuations in the exchange rate between the Euro and the U.S. dollar.
While your investment is not protected or guaranteed, the benefits of the discounted price and the company match will limit your risk of loss if the Legrand share price falls, and will increase your profit if it rises.
Your investment in the plan will be locked in for five years, meaning you can’t sell the stock, unless you meet one of the early release rules listed in the U.S. supplement.
Your investment is subject to taxation. Read the U.S. supplement for details.
If you have any questions, contact your local HR representative or the U.S. representatives in the “Contact” section at https://employeeshareplan.legrandgroup.com.
Would you like to make the most of this opportunity?
This plan is available to all employees, and you can buy as little as one share of Legrand stock.
Visit https://employeeshareplan.legrandgroup.com to find out more and to make your investment election starting Monday, March 18th, until 6 p.m. ET on Tuesday, April 2, 2024.
Seizing the future together
THE PLAN
It is a plan that allows employees to invest in their company’s shares on favorable terms.
The Legrand Group wishes to further increase your involvement, as an employee, in the future of the company.
The Employee Share Plan will enable you to become a shareholder in the company, on favorable terms.
Beyond the financial opportunity, this initiative symbolizes our shared vision of the future and recognition of the hard work of each and every one of you.
ELIGIBILITY
All employees (excluding interns and co-operative students) with at least 3 months of service with Legrand (continuously or not) between January 1, 2023, and April 2, 2024 (last day of the subscription period), and who are still employed on that day are eligible to participate.
No, because temporary workers are under contract with a temporary employment agency, not with a Legrand Group company.
Yes, if you meet the eligibility requirements noted above, you can participate. At retirement, you can choose to sell your shares (because that is one of the rules of early release), or you can continue to hold your shares indefinitely.
You can sign up during the Subscription Period: between March 18 and 6 p.m. ET on April 2, 2024.
If you are working in a country that offers the Legrand Group’s Employee Share Plan (i.e., China, France, India, Italy, U.S.) and you are being paid by Legrand’s payroll in that country, you can sign up for the plan.
If your host country does not participate in the Employee Share Plan, or if you are being paid by an alternative payroll system, you cannot participate.
SUBSCRIPTION CONDITIONS
We recommend that you use the Simulator Tool first to determine how much you want to invest and how much company match you will receive. When you’re ready to scribe, all it takes to sign up is a few clicks:
- Click on the “Subscribe” button
- Then click on the “Request password” button
- Enter your email address to get a temporary personal link
- Choose your password
- Complete the subscription screen and don’t forget to confirm your subscription
If you have received your login and password by mail, simply enter this information on the screen in step 3 and click on the “Log in” button.
If you have forgotten your password, email employeeshareplan-usa@legrand.com.
Contact your local HR representative or email employeeshareplan-usa@legrand.com.
Yes, you can change or cancel your election as many times as you’d like, before 6 p.m. on April 2.
Your contribution cannot exceed 25% of your gross annual pay for 2023 (including commissions and bonuses).
A link to a simulator is available on this website to help determine the maximum amount that you can invest in the Employee Share Plan.
You are responsible for complying with the maximum investment limit.
The HR department may contact you during or after the subscription period to reduce your contribution amount. However, the HR department is under no obligation to do so and cannot be held liable if you exceed the investment limit of 25% of your annual pay for 2023.
AFTER SUBSCRIPTION
If the total number of shares requested exceeds the number of shares available under the Employee Share Plan (maximum of 300,000 shares for all participating countries), the highest subscriptions will be capped at a level that allows the total number of shares offered to be met. Subscriptions for an amount equal to or less than this “maximum” level will be met in full, and subscriptions for a higher amount will be limited to this level. You will be notified if your election is capped.
If you have opted for several payment methods, the reduction will apply in the following order of priority:
- One-time payment via personal check, certified bank check or money order
- Payments via payroll deduction
Your Legrand shares will be held in an account in your name at Banque Transatlantique, a bank in France.
In return for the benefits of the Legrand Group’s Employee Share Plan (e.g., discount, company match, interest free payroll deductions over 12 months), your investment is locked for five years.
It is possible to sell your shares and receive the money in cash before the holding period expires, if you meet one of the early release rules. See the U.S. Supplement on the “Documentation” section of this website.
The rules of early release are specific to your country and are listed in the U.S. Supplement, available in the “Documentation” section of this website.
The early release event must occur after the end of the subscription period (i.e., after April 2, 2024). Early release requests can be submitted after the subscription period ends, but shares will not be released until they have been delivered to your account at Banque Transatlantique (i.e., after May 14, 2024).
Contact your local HR for an early release form and a list of required documentation to prove the early release. Submit the completed form and required documentation as instructed.
If your request is validated, Banque Transatlantique will be instructed to sell your shares. If you elect to pay for your contribution by payroll deduction over 12 months, any outstanding amount that you owe will be paid to Legrand. The remaining proceeds from the sale of your shares will be deposited into your cash account at Banque Transatlantique. Then you can request a bank transfer from the cash account to your personal bank account at any time. Please note that it may take several weeks to receive your money.Note that any investment held for one year or less is subject to ordinary income tax, while investments held for more than one year are subject to capital gains tax. Capital gains tax rates are generally lower than ordinary income tax rates. Consult your tax advisor for more information.
Yes, your investment is subject to U.S. federal tax (and possibly state and local taxation, depending on where you live). You will immediately owe tax on the 20% discount and company match. Legrand will withhold income and required regulatory taxes (e.g., FICA, Medicare) from your pay in May or June 2024 on this compensation at the supplemental federal tax rate (i.e., 20%) and the applicable state and local taxes. You may want to increase your tax withholding or make an estimated tax payment if you think you may owe more tax.
Additionally, you will owe income taxes on any dividends you receive each year. Dividends are subject to taxation in France; Banque Transatlantique will withhold French taxes at the current rate of 12.8%. For U.S. federal income tax purposes, you will need to include the dividend paid (including any French withholding tax) in your gross income. You may be able to claim the French withholding tax as a credit or deduction for U.S. income tax purposes.
If you sell your shares, you will owe taxes on any profits you earn. Be sure to keep a copy of your May or June 2024 pay statement which shows the amount of the discount and company match that you will pay tax on, so you are not double taxed.
Please consult your personal tax advisor for more information.