ESOP 2018 : The CFDT’s Advice
The CFDT is not particularly in favor of the financialization of the economy, but as employees of a multinational such as the AIRBUS group, we are directly confronted with this.
So that you, as employees, can make an informed decision, the AIRBUS CFDT would like to provide you with details on the ESOP operation and the investment possibilities proposed.
1) Preference to the “PEG 5 year” formula over the “Pure Nominative 1 year”:
Contrary to last year, the subscription price for the “PEG 5 year” formula (88.65€) is higher than the “Pure Nominative 1 year” (84.17€). In spite of this, whatever the number of shares subscribed, our simulator (*) shows that it is still more profitable to choose the “PEG 5 year” formula over the “Pure Nominative 1 year”(**).
The only constraint is therefore the mandatory 5-year conservation period versus 1 year (except in case of early release)!
* CFDT simulator recently sent to our members
** it is furthermore to be noted that the lower the number of actions purchased, more the gap is marked in favor of the “PEG 5 year” formula. This is due to a relatively high number of free shares provided, these latter being highly taxed in the “Pure Nominative 1 year” formula.
2) Possibly consider the “rotation” of capital already invested in an ESOP (over 5 years):
For those who do not wish to invest money this year, but who have already purchased Airbus shares in the past (ESOP but also any other investment of over 5 years in the PEG), it seems wise to sell these “old” Airbus shares to buy the equivalent in “new” Airbus shares, and therefore benefit from the “bonus” of free shares from ESOP 2018. This amounts to “refreshing” your shares and generating an additional gain… although prolonging the required holding period by 1 or 5 years.
3) Invest without taking risks! (for a purchase in the frame of PEG blocked 5 years, on Amundi):
The final profitability rate for the money invested will only be known in 5 years, and will depend on the Airbus share value in 5 years, which is of course aleatory. While respecting the legislation (i.e. blocking of the funds for 5 years within the Amundi envelope) It is possible to “freeze”, for security, the profitability rate of the operation: The tip consists in arbitrating on the Amundi site from the “Shares PEG Airbus Group” towards another more secure fund, “Monetary PEG Airbus Group” for example. This transfer can be done once the subscribed actions have been attributed (around May 2018) or at any later moment.
4) Subscribe more towards the end of the subscription period (the period going from February 22nd to March 8th 2018):
For identical conditions, this allows two further weeks to evaluate the opportunity and the amount to be invested in ESOP 2018, especially in case of a significant fluctuation of the share value during this period.
5) If you are hesitating… compare the profitability rate for the invested money to what would be obtained on a Livret A:
By purchasing 5 shares on the PEG (with the current share price >95€), our simulator shows a profitability rate above 85% over 5 years (over 17% / year). By investing the same amount on the Livret A, the profitability rate is over 20 times lower! (around 4% over 5 years, meaning 0.75% / year)!