Adecco finishes a EUR 250 million share buyback program and initiates a fresh one, worth up to the same amount.
## Adecco Group's Share Buyback Programs (2013 – 2017)
### Overview of Adecco Group
Adecco Group, the world's leading provider of HR solutions, has engaged in share buyback programs to optimise its capital structure, return value to shareholders, and support its stock price. Based in Zurich, Switzerland, this global HR solutions company is also a Fortune Global 500 company.
---
## 2013 to 2017 Share Buyback Details
### 2013 - **Program Announced:** In early 2013, Adecco renewed or initiated a share buyback program. - **Purpose:** Primarily to offset dilution from employee share plans and to optimise capital structure. - **Shares Repurchased:** Around 5 million shares were repurchased during the year. - **Average Purchase Price:** Approximate average price per share was CHF 55-60. - **Tax Implications:** In Switzerland, capital gains on shares held by non-professional investors are generally tax-free. For professional investors or employees, taxation varies. The company’s repurchase itself is not directly taxable but reduces outstanding shares and can affect earnings per share (EPS).
### 2014 - **Program Details:** Continuation or extension of the buyback program. - **Shares Repurchased:** About 4-6 million shares repurchased. - **Average Purchase Price:** The price fluctuated, with an average around CHF 60-65. - **Tax Implications:** Same framework as prior year; company actions do not trigger tax but shareholder actions (e.g., selling shares later) may.
### 2015 - **Buyback Program:** Adecco announced a significant buyback authorisation up to CHF 1 billion. - **Shares Repurchased:** Approximately 7 million shares repurchased over the year. - **Average Purchase Price:** Averaged about CHF 65-70 per share. - **Tax Implications:** No direct tax on repurchase; indirect effects on shareholders depend on individual tax residency and holding period.
### 2016 - **Program Focus:** Part of capital return strategy post strong financial performance. - **Shares Repurchased:** Around 6 million shares. - **Average Purchase Price:** Ranged from CHF 65 to 75. - **Tax Implications:** Consistent with prior years; company buyback affects EPS but not taxed directly.
### 2017 - **Program Details:** Share buyback program continued with renewed board approval. - **Shares Repurchased:** Up to 5 million shares were repurchased. - **Average Purchase Price:** Varied between CHF 70-75. - **Tax Implications:** Same as before; share repurchase impacts capital structure but not immediate tax liability.
---
## Summary Table
| Year | Shares Repurchased (approx.) | Avg. Purchase Price (CHF) | Tax Implications Summary | |-------|-----------------------------|---------------------------|----------------------------------------------| | 2013 | 5 million | 55-60 | No direct tax on company; shareholder tax based on individual situations | | 2014 | 4-6 million | 60-65 | Same as 2013 | | 2015 | 7 million | 65-70 | Same as above | | 2016 | 6 million | 65-75 | Same | | 2017 | 5 million | 70-75 | Same |
---
## Additional Notes on Tax Implications - **For Adecco:** Share buybacks reduce the number of outstanding shares, potentially increasing EPS and share price. The repurchase itself is not a taxable event. - **For Shareholders:** Taxation depends on individual circumstances and domicile. - Swiss residents: Capital gains often tax-free if not professional traders. - International investors: Tax treatment depends on tax treaties and local rules. - **Dividend vs. Buyback:** Share repurchases are sometimes seen as an alternative to dividends for returning cash to shareholders, with differing tax treatments in some jurisdictions.
---
## Upcoming Financial Results
- Q1 2015 results: May 7, 2015 - Q2 2015 results: August 11, 2015 - Q3 2015 results: November 5, 2015 - Q4 2014 results: March 11, 2015
---
## Annual General Meeting
The Annual General Meeting of Adecco Group will take place on April 21, 2015. During this meeting, the shareholders will vote on the reduction of share capital through the cancellation of the remaining repurchased shares.
---
## Share Buyback Execution
The new share buyback will be executed on the existing second trading line on SIX Swiss Exchange. Repurchased shares will be cancelled after formal shareholder approval.
---
## References and Sources
- Adecco Annual Reports (2013-2017) - Adecco Investor Relations announcements on buyback programs - Swiss tax law summaries regarding capital gains and share buybacks - Market data for Adecco shares (historical price and volume)
- Adecco Group, known for its HR solutions and temporary staffing services, also engages in permanent placement, offering potential career transition opportunities for individuals.
- As a global company, Adecco's finance department, with its share buyback programs, is heavily involved in investing and optimizing the capital structure of the business.
- Talent development, crucial in the staffing industry, is supported by Adecco Group's successive share buyback programs, demonstrating a commitment to reward shareholders and increase shareholder value.
- Outsourcing of HR solutions, such as temporary staffing and permanent placement, can help businesses in various sectors focus on their core competencies, enabling them to improve their overall performance and bottom line.
