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réaliser sa plus-value
souscription des acquisitions

Glossary entry

French term or phrase:

exécuter le management package

English translation:

implement the management package/management incentive plan

Added to glossary by Una Dimitrijevic
Nov 13, 2019 12:14
4 yrs ago
1 viewer *
French term

exécuter le management package

French to English Bus/Financial Finance (general)
Context: a company report on recent activities and performance. I think I need some help on a rather technical paragraph:

"Les objectifs étant réalisés, nous nous inscrivons dans un processus de renouvellement de notre actionnariat, XX notre actionnaire majoritaire nous ayant indiqué son souhait de réaliser sa plus-value. Cette sortie conjointe permet également aux salariés associés d’exécuter le management package et de réaliser la plus-value."

What I understand from this is that tag-along rights allow employees to sell their shares at the same time as the main shareholder. I'm not sure whether this term "management package" would be used in English, or if something like an employee stock ownership plan (ESOP) is equivalent, in which case would we say "sell off an ESOP"?

Thanks for your help!
Proposed translations (English)
4 +1 implement the management package
2 roll over their equity / activate their incentive scheme
2 claim the management package benefits (and bonus)

Proposed translations

+1
52 mins
Selected

implement the management package

A package can refer to remuneration - it means the total benefits you receive, including things like share options.

Management package
We offer you a cross-functional and tailor-made approach to structuring and negotiating compensation packages for key executives and employees
http://menloavocats.com/en/expertise/management-package/
Peer comment(s):
agree AllegroTrans
3 hrs
Something went wrong...
4 KudoZ points awarded for this answer. Comment: "Thanks, I like "implement", it seems the client also uses Management Incentive Plan interchangeably"
2 hrs

roll over their equity / activate their incentive scheme

From what I can tell, a management package is pretty much an incentive scheme for top managers revolving around options/warrants/shares, but the term itself seems specific to France, I haven't come across it before.

The mechanics of such arrangements in France come into play in the event of an LBO, with major tax implications. The point of these packages is to ensure managers retain (or improve) all the benefits of their previous equity positions, thus bringing them on board the buyout.

The closest equivalent I can find in English is "equity rollover", which is a common term but not as 'formal' as the FR, so I'm not sure.

Also not sure if the plus-values at the end of the sentence in question relates to capital gains (which only come into effect once options or shares are sold) or to profits or dividends.

Wikipedia link at the bottom for general context, more specific links below.

--------------------------------------------------
Note added at 2 hrs (2019-11-13 14:27:50 GMT)
--------------------------------------------------

https://www.valuationresearch.com/pure-perspectives/rollover...
http://www.docdep.com/blog/rollover-equity-what-is-it-and-wh...
https://uk.practicallaw.thomsonreuters.com/4-379-9776?transi...

https://www.divestopedia.com/2/5178/pre-sale/preparation/con...

https://www.lesechos.fr/2006/10/les-ecueils-du-management-pa...
https://lexpansion.lexpress.fr/actualite-economique/tout-sav...
https://www.agefi.fr/financements-marches/actualites/hebdo/2...
https://blog.valoxy.org/management-package-utilite-risques/
https://www.journaldunet.com/management/expert/30992/le-mana...
https://www.scottopartners.com/wp-content/uploads/2016/04/LB...
https://www.actualitesdudroit.fr/browse/affaires/societes-et...
Example sentence:

This joint exit also enables employee shareholders to roll over their equity [...]

This joint exit also enables employee shareholders to activate their management incentive scheme [...]

Reference:

http://en.wikipedia.org/wiki/Leveraged_buyout

Peer comment(s):
neutral AllegroTrans : You may well be right, but I think it's unwise to change what is already a comprehensible term
2 hrs
Fair enough, but the meaning seems much narrower in FR and tied to LBOs in particular.
neutral Steve Robbie : I wouldn't say it's automatically comprehensible - "management package" does seem to mean something very specific in French - but I'm loth to change terms that are already in English. Not least because it can cause confusion in subsequent discussions.
3 hrs
Point taken, but if the term means something different or much broader in EN, using it would also create confusion down the line.
neutral philgoddard : Surely they're not rolling it over, they're cashing it in.
4 hrs
That's what I'm unsure of. If the managers are staying, they're likely rolling it over, but if they're leaving, then yes, they're cashing it in.
Something went wrong...
10 hrs

claim the management package benefits (and bonus)

the "package" is now available
Something went wrong...
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