Management packages

Thomas Hachette, Sorgem Evaluation’s Partner, moderated a conference on management packages alongside with Alexandre Segretain, Administrative Magistrate and Public Rapporteur at the Paris Administrative Court. This conference was organized at the Hotel du Collectionneur by the Club DCF (Droit Chiffre Finance), which brings together accountants, auditors, lawyers, notaries, financial advisers, etc. in order to promote inter-professional exchanges (http://www.leclubdcf.fr/).


They first gave a reminder of the existing mechanisms allowing employees to invest in their company’s securities. They presented the latest developments, particularly in terms of taxation, which led to changes in the type of securities in which managers can invest.


A presentation of valuation methods for optional securities (Ratchet Preferred Shares, warrants, call options) and interest rate instruments (Preferred shares, Convertible Bonds, shareholder loans, etc.) was performed.


Thomas Hachette and Alexandre Segretain shared their experience of tax audits and litigation on the subject and commented on recent decisions on the subject. They could notably highlight certain practices which may pose difficulties during tax audits.


Management Packages

Management packages quickly established themselves as essential tools used in ensuring the consistent execution of corporate strategy. To that end, companies and investment funds structure them by turning to increasingly complex financial instruments. Sorgem Evaluation offers its clients a large set of management package-related services, ranging from providing assistance in defining and structuring packages, to valuing and negotiating them. We also provide expert assistance in the context of litigation.

Management incentive schemes are valued using stock-options valuation methods such as Black & Scholes, binomial/trinomial tree models, or even Monte Carlo simulations.