The overall compensation of the patrons of the 120 largest French listed companies reached 3.5 million euros in 2015, up 20% compared to 2014, according to the firm Proxinvest. Five of them have hit more than 10 ME…
(Boursier.com) — revenues of the big bosses French have reached record highs in 2015… On average, the leaders of the 120 companies in the stock market index SBF 120 have reached 3.5 million euros in the previous year, an increase of 20% compared to 2014.
These figures, published by the consulting firm for investors, Proxinvest, include all types of remuneration: fixed salary, annual bonus, directors ‘ fees, benefits in kind, stock-options and free shares performance grant date, incentive cash and other indirect forms of compensation.
pay disconnected from financial performance of companies
For larger companies, those composing the CAC 40, the average remuneration amounted to 5 million euros, an increase of 18% compared to 2014. Proxinvest notes in his annual report on remuneration this amount now exceeds the maximum remuneration socially acceptable, and that the cabinet was set to 240 times the French MINIMUM wage (THE 4.8 I).
The firm also points out that the economic performance of enterprises observed in 2015 “would seem to justify some reservations about the magnitude of the increase and on the levels”.
Well, the CAC 40 index saw a contrasting performance within… Globally, the index has climbed 8.5% in 2015, while the combined turnover of its members has fallen by 3%, the operating income accumulated was down 7% and the cumulative net proceeds have yielded 11%, ” says Proxinvest.
The boss of Sanofi, Ruby and Renault in the top three
For the first time since 2005, the remuneration of the 5 bosses are better paid have exceeded 10 million euros per year. The ceo of Sanofi, Olivier Brandicourt, topped with 16.8 to ME, of which 7.2 ME of “bonuses” welcome granted in the form of compensation and stock performance. Gilles Gobin, founder of Ruby, is second (16.4 to ME, including the share of a dividend the general partner equal to 3% of the increase in market capitalization over the year…
Carlos Ghosn, CEO of Renault and Nissan is third in the ranking with a revenue of 15.6 ME. He is the only boss French to earn a double compensation that is not validated by its shareholders, who have rejected during the general assembly.
4th in the ranking, Bernard Charlès, ceo of Dassault systèmes, has seen his total compensation increase of 31% and 14.1 ME, while Jean-Pascal Tricoire, CEO of Schneider Electric, is happening, despite a year of 2015 to be disappointing, in fifth place in the rankings with 10.4 for ME, an increase of 86%. This increase is essentially explained by the payment to Mr. Tricoire in financial compensation related to the termination of its pension plan additional…
The “Say On Pay” should become binding by 2018
The introduction from 2013 of a consultative vote of the shareholders in general meeting on a remuneration (“Say On Pay”) does not, therefore, seem to have had a moderating effect on the remuneration of executives, especially on the variable components and exceptional, that have exploded. However, during general Meetings, investors have expressed a preference for the remuneration moderate.
as Well, is Proxinvest, the three pay of the CAC 40 higher (Sanofi, Renault, Schneider Electric) have obtained the scores for approval the lowest, respectively, 63%, 46% and 58%. Conversely, the four plebiscites, the highest in the CAC 40 have been obtained in companies not exceeding 2 m in total compensation (Bouygues, Orange, Legrand, Klépierre).
In 2015, for the first time in France, general assemblies have refused to approve the total compensation of their leader… It is the case of Carlos Ghosn (Renault), Patrick Kron (ex-Alstom) and officers of Solocal. These discharges, however, have no legal consequence, Say on Pay is only advisory…
This situation should, however, be changing from 2017, because Parliament has just adopted in the framework of the law Fir 2, a measure designed to provide shareholders with effective power to oppose excessive remuneration of executives of listed companies.
once the law is enacted (before the end of the year, in principle), the shareholders shall decide in a first step, in 2017, on the criteria for determination, apportionment and allocation of the remuneration fixed, variable and exceptional. And the following year, in 2018, they will be able to express themselves on the amounts actually awarded, and their agreement becomes binding to be able to pay the…
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