Business

Record pay for big bosses in France in 2021

Posted on Tuesday, November 22, 2022 at 3:03 pm

Remuneration of big bosses in the CAC 40 in France reached a mean of seven.9 million euros final yr, greater than 100 occasions that of their staff, in accordance with a report revealed on Tuesday by proxyinvest shareholder consultancy agency.

The research famous, “a pointy improve in median and common compensation in all indicators (CAC 40 and SBF 120, editor’s be aware). We are actually on historic file”, declared Jehan Leroy, Director of ESG Research (Environmental Criteria, Social and Governance). ) throughout a media convention.

They are pushed by the businesses’ excellent post-Covid outcomes in 2021, on which the remuneration parts are listed.

The common complete compensation of bosses in the CAC 40 index elevated by 52%, whereas that of government presidents in the SBF 120 index, made up of the 120 largest corporations listed in France, elevated by 22% to 4.5 million euros.

In both case, it was exceptional for fifteen years.

– “The Carlos Tavares Effect” –

These 2021 figures have been obtained in comparability with 2019 earlier than the well being disaster and aren’t in contrast with 2020 which is taken into account a non-representative yr as a sure variety of administrators have given up a part of their remuneration.

This improve can be defined by the “Carlos Tavares impact (normal supervisor of the Franco-Italian-American automotive group) Stellantis (Peugeot-Citroën-Fiat…)”, whose complete compensation (mounted, variable, shareholder) is the best ever seen by Proxinvest. Record, 66.7 million euros (19.15 million euros in accordance with the corporate).

“This is the primary time in 15 years that an organization has offered complete compensation above 50 million euros,” the report stated.

Carlos Tavares’ compensation was rejected by Stellantis shareholders on April 15, however the vote was purely advisory in the Netherlands the place the corporate relies, not like in France the place such a vote has been obligatory since 2018.

To set up its rating, the Proxinvest report considers all components of compensation: mounted, annual bonus, long-term multi-year compensation, allocation of shares valued at their grant date, sort of advantages, and so forth.

All these items exploded final yr. Average everlasting compensation rose 4.2% and common annual bonus 33.6% among the many CAC 40, whereas the worth of free efficiency share allocations jumped 39.6% to an all-time excessive in the SBF 120.

– Wage Dispersion –

It represents “the primary time in eight years that the common compensation of CAC 40 administrators is greater than 100 occasions the common compensation of staff” or 369 occasions the minimal wage on a 39-hour foundation, the report which identifies the higher restrict of the socially acceptable most remuneration calculated by Proxinvest (5.12 million euros ) with worse settlement.

In all, 29 leaders crossed the edge, in comparison with 14 in 2020 and 24 in 2019, which ought to reignite the controversy over the buying energy of probably the most modest particular person, additional eroded by inflation.

Over the 2014-2021 interval, executives’ common compensation grew 83.8%, 3 times quicker than staff, who grew 23.9%.

The proxyinvest agency, which points shareholder vote suggestions for normal conferences, is happy that, from 2021, all CAC 40 corporations have now built-in ESG efficiency standards into CEO variable compensation.

Rounding out the highest 5 among the many highest-paid executives are Carlos Tavares (66.7 million euros), Bernard Charles of Dassault Systèmes software program group (44.1 million euros, together with 40.8 million in shareholder remuneration), Daniel Julien of name middle firm Teleperformance (19.6 million euros). , François-Henri Pinault from luxurious group Kering (12 million euros) and Paul Hudson from pharmaceutical laboratory Sanofi (9 million euros).

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