The strategic project, prepared by the management team, is discussed with the investor and the employee representatives. The adherence of the social body to the project is an essential condition. It forces stakeholders - investors, managers, employees - to develop a shared vision of the future and to put in place a business plan of reference.
The equity investor holds a financial instrument - "NewCode Instrument" - which replaces the ordinary shares, entitles the holder to a fixed interest and a share of the value created. The NewCode instrument presents an intermediate risk-reward profile between equities and bonds.
Value created is shared between human and financial capital in proportions originally planned in the NewCode agreement. Value sharing occurs during the execution of the plan (bonuses, profit-sharing, dividends) and / or during refinancing operations (crystallization and distribution of value).
It is the counterpart to the contracting of the investor's remuneration. The processes of adaptation of the company in case of underperformance are anticipated and documented in the NewCode agreement. This anticipation clarifies in advance the rules of the game and empowers employees to protect the operational performance of the company.
Management representatives, investors, outside directors and employee representatives participate in the governance of the company. Well aware of the realities of the company, they participate, upstream of the decisions, in the debates on the strategic plan, sharing with the other directors their operational knowledge of the company, its markets as well as the performance factors of the organization.