France to cap top pay in state groups

[WestVirginiaRebel]

Financial Times:

France’s new socialist government has launched a crackdown on excessive corporate pay by promising to slash the wages of chief executives at companies in which it owns a controlling stake, including EDF, the nuclear power group.

In a departure from the more boardroom-friendly approach of the previous right-of-centre administration, newly elected president François Hollande wants to cap the salary of company leaders at 20 times that of their lowest-paid worker.

According to Jean-Marc Ayrault, prime minister, the measure would be imposed on chief executives at groups such as EDF’s Henri Proglio and Luc Oursel at Areva, the nuclear engineering group. Their pay would fall about 70 per cent and 50 per cent respectively should the plan be cleared by lawyers and implemented in full.

Mr Proglio earned €1.6m last year – 65 times more than his lowest-paid worker.

The government also wants to pressure other companies in which it owns a stake to follow its lead, even though it has no legal power to force such a change.

France is unusual in that it still owns large stakes in many of its biggest global companies, ranging from GDF Suez, the gas utility; to Renault, the carmaker; and EADS, parent group of passenger jet maker Airbus.

Mr Ayrault said he “believed in the patriotism” of company leaders and their willingness to share the country’s economic pain. Mr Hollande and his ministers are taking a 30 per cent pay cut.

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Socialism is patriotic...

[clearvision]

Seems like a pay cut would also mean less taxes to the state.

[Evad]

I guess pFrance has a 1% to sling arrows at also.