French government seeks pay cuts for CEOs of semi-public firms: paper

Reuters News
Posted: Mar 02, 2014 4:33 PM

PARIS (Reuters) - France's government has asked the chief executives of companies in which it owns a minority stake to accept pay cuts of up to 30 percent in upcoming pay rounds as the country tightens its belt, the daily Le Figaro reported on Sunday.

Citing state and company sources, Le Figaro said the Socialist government wanted companies including Air France, carmaker Renault, Safran and GDF Suez to reduce their CEOs' salaries.

The agency that manages state shareholdings is seeking pay cuts of up to 30 percent during talks with several companies, but that figure is merely a guideline, the newspaper reported.

No government source was quoted in the report.

President Francois Hollande, who is struggling with rock- bottom approval ratings, previously ordered the wages of CEOs of companies in which the state holds a majority stake to be limited to 450,000 euros ($621,500) per year.

The government does not have the authority to impose salary limits in companies in which it holds a minority stake, but can apply pressure via a consultative vote.

($1 = 0.7240 euros)

(Reporting By Nicholas Vinocur; Editing by Kevin Liffey)