Company Valuation Sharing Plan (POPP)

Verified 03 July 2025 - Directorate for Legal and Administrative Information (Prime Minister)

What is the company Valuation Sharing Plan (POVP)? It allows employees, subject to conditions, to benefit from a premium of a capped amount when the value of their company has increased during the 3-year period set by the plan. The introduction of this device is optional. We present the regulations to you.

Warning  

He don't confuse the premium from the company Valuation Sharing Plan (POPP) with the value-sharing premium (PPV).

The PVE is a device optional.

All companies may establish a POPP. There's no no headcount requirement.

Thus, the plan may also concern groups of companies or groups constituted by cooperatives.

FYI  

The company Valuation Sharing Plan (POVP) may also be implemented by, among others:

  • Public industrial and commercial establishments (Epic)
  • Public administrative institutions (Epa) when they employ private-law staff.

In order to benefit from the plan, the employee of the company (or group) must provide proof ofone year of seniority.

Seniority is calculated from starting date of the 3-year period set by the agreement that puts the plan in place.

Please note

A period of service of less than 1 year may be fixed by the plan, but it may not require a period of service of more than 1 year.

Some employees are not beneficiaries of the plan. These are employees who:

  • Do not have the expected length of service on the starting date of the plan, even if they reach the required length of service within the three-year period laid down in the plan
  • Or who leave the company during the 3-year period, as they are no longer employed at the termination date of the plan.

Method of drawing up the plan

The plan may be established in one of the following ways:

  • By a collective agreement or agreement
  • By agreement between the employer and representatives of representative trade unions in the company
  • By agreement with the ESC: titleContent
  • Following ratification a majority of two thirds of the staff of a draft agreement proposed by the employer. Where there are one or more representative trade union organizations or an ESC in the company, ratification shall be requested jointly by the employer and one or more of these organizations or this committee.

FYI  

The agreement shall be drawn up on the basis of a special report by the company auditor or by an auditor appointed for that purpose.

Content of the agreement

The Agreement defines in particular the following points:

  • The reference amount to which the rate of change in the value of the company will be applied
  • Any conditions for modulating the reference amount between employees
  • The valuation formula for companies whose securities are not admitted to trading on a regulated market
  • The date on which the value of the company is assessed (which is the starting point for the 3-year period of the plan) and the date 3 years later on which the value of the company is assessed (for calculating the rate of change)
  • The date or dates on which the premium is paid.

The agreement may provide for the renewal of the plan and its terms of renewal.

Deposit and monitoring of the agreement

The Agreement Establishing the POPP, and its addenda and its annexes, are deposited on the tele-procedure platform TeleAccords:

TeleAgreements - Collective company Agreement Filing Service

The agreement is controlled by the social security collection agency on which the company depends (Urssaf, MSA...).

Please note

The company must deposit the agreement establishing the POI. Compliance with the deposit procedure determines the tax and social security exemptions attached to the premiums to be paid at the end of the plan.

Plan Duration

The PVE is set up on a three-year period.

Companies can only set up one single plane over a period of 3 years.

Each employee concerned must be informed of the existence of the POE. The employer must give him a cardseparate from the pay slip, indicating the following information:

  • The reference amount allocated to it
  • The modulation criteria which may have been applied to it
  • The valuation rule applicable to the company
  • The conditions laid down for entitlement to the premium upon expiry of the three-year period.

Unless the employee objects, the card may be delivered electronically. The system used must guarantee the content of the data transmitted.

The company valuation sharing plan allows employees to benefit from a bonus. We're talking about the company valuation sharing premium.

The payment of this premium is possible if the value of the company has increased within 3 years of the date set by the agreement establishing the POPP.

To determine the amount of the premium, the change in the value of the company is applied to the reference amount specific to each employee.

The calculation of this ratio requires the value of the company to be determined at the beginning and at the end of the 3-year period.

Reference amount

The reference amount allocated to each employee is set at the application of the agreement setting up the plan.

The reference amount may differ between employees depending on the remuneration, classification level or duration of work provided for in their employment contract.

Valuation of the company

Company valuation is obtained differently depending on the shape of the company:

Répondez aux questions successives et les réponses s’afficheront automatiquement

In unlisted companies

In unlisted companies, the company's valuation formula is determined by the agreement that implements the plan. The formula may take into account the particular criteria of each company, in particular its accounting situation, profitability or business prospects.

Where particular criteria have not been determined or cannot be used, the value of the company is then equal to the amount of the revalued net asset, calculated on the basis of the most recent balance sheet.

The company valuation formula must be applied in the same way on the start date and the end date of the 3-year period.

In publicly traded companies

In publicly traded companies, the value of the company is its average market capitalization over the last 30 days before the start date and end date of the 3-year period.

Rate of change in the value of the company

The rate of change in the value of the company shall be the rate of change between the value of the company determined at a date fixed by the Agreement and the value of the company at the end of the three-year period commencing on the day following that date.

For each employee, the share premium for the company's valuation results from the application to the reference amount of the company's value rate of change, where this rate is positive

When the company's rate of change is positive, each employee affected by the plan shall receive a company valuation sharing bonus.

When the rate of change is negative or zero, the employee does not receive a company valuation sharing premium.

Yes, the amount of the premium paid to each employee for the same fiscal year is capped.

The premium may not exceed 75% the amount of the annual social security ceiling.

FYI  

Payments to employees in application of the POPP do not replace salaries or increases and other premiums already provided for in contracts of employment or company practices.

The employees concerned by the payment of the company valuation share premium must be personally informed by the employer.

An employee's application to the POE must be disclosed in a separate card, separate from the pay slip, which includes the following information:

  • The reference amount allocated to it
  • The amount of the premium awarded to him
  • The CSG/CRDS deduction
  • The possibility of allocating these sums to a salary or retirement savings plan (PEE, PEI, Perco, PERECO, PERO) and the deadline for requesting an assignment (maximum 15 days)
  • Where the premium is invested in such a plan, the period after which the rights arising from that investment will be available and the cases of early release.

A note annexed to this fiche must recall the essential rules for calculating and adjusting the reference amount laid down in the plan.

Unless the employee objects, the form and the attached note may be submitted electronically. The system used must guarantee the content of the data transmitted.

At the end of the plan, COMPANY a 7 months to calculate the amount of the premium to be allocated to each employee concerned by the plan.

The premium may be paid in one or more installments on a 12 months.

Please note

In the information sheet given to him, the employee is warned that he has 15 days to request payment of all or part of its premium on a wage savings plan or a company retirement savings plan.

A favorable tax regime will apply to amounts paid into a wage savings plan or a retirement savings plan.

If an employee receiving the bonus leaves the company between the plan's end date and the date of payment of the premium, he retains the right to collect his premium and must be informed at his new address.

At the end of the plan and after the final date for payment of the premium, the company retains the sums due to the former employee for one year.

If the employee who has left the company does not claim his premium during this period of one year, the company returns the money to the Caisse des Dépôts et Consignations (CDC).

FYI  

Any money not distributed to an employee receiving a POE award can be searched on the Ciclade online service:

Find out if a person is a beneficiary of an inactive account (Ciclade)

The social security plan for premiums that will be paid in fiscal years 2026 to 2028 is as follows:

  • The premium is exempt the social security lump sum and all social contributions of legal or contractual origin payable by the employee and the employer
  • The premium is submitted to CSG and CRDS and a specific employer contribution of 30%.

The tax treatment of the POE application premium differs depending on the employee's choice:

Répondez aux questions successives et les réponses s’afficheront automatiquement

Assignment to a salary or retirement savings plan

If the employee applies for payment of all or part of his premium on a wage savings plan or on a company retirement savings plan, the sums paid will be exempt from income tax up to the maximum, per year and per beneficiary, 5% of the 3/4 annual social security ceiling.

Immediate Availability

If the employee decides to receive the bonus immediately, the bonus will be subject toIncome tax under the same conditions as a salary.