Glossary of employee savings and employee shareholding

On 2024-02-24

In Feature articles

PEG, FCPE, compartment, share, fractional shares... develop your knowledge and understanding.

Compartment

Within the same FCPE, there may be several compartments for which the management objective remains the same, but which may differ in certain characteristics. In this case, following Renault Group's negotiation with BNP, for certain FCPEs the R share benefits from reduced management fees compared to the classic C share.

Broken

Employee Shareholders do not hold shares directly, but units in a Mutual Fund (FCPE) invested in shares. Thus, whatever the amount invested by the Employee Shareholder, it is possible to convert it into a number of shares, with fractions of shares. But when voting for the resolutions of the General Assembly, only a whole number of shares is taken into account. For example, an Employee Shareholder with 23.45 shares will exercise 23 voting rights. The remaining 0.45 are “broken”.

The sum of fractional shares of all Employee Shareholders represents several tens of thousands of voting rights. These are exercised by the FCPE Actions Supervisory Board.