French golden parachutes
According to a study conducted by the private consulting firm Hay Groupe and published in the french newspaper “La Tribune”, “golden parachutes” of French CEOs when they leave their position are the highest in Europe even if their income levels are in the European average. According to the study, French CEOs would “double their basic salary and yearly bonus” the day they leave, where only 50% of American CEOs get this kind of package.
The debate on this issue has been fueled in France by the fact that such golden parachutes had been given to non-performing CEOs. There is a reflexion going on within the French Parliament about restoring the linkage between performance and benefits for CEOs of big companies.
June 20th, 2007 at 9:20 am
There is a lot of consternation in the U.S. about U.S. CEOs getting golden parachutes, especially after scandals like backdating stock options. Interesting that France also faces this. I guess the “culture of business” is universal. Especially in this globalized world where companies are multinational and competing in multiple arenas, and with a business media that pays attention to these things.