From Capital To Salary Control: France To Cap State-Owned Company Executive Pay

Tyler Durden's picture

At this point there is no longer a point in commenting the daily insanity coming out of Europe. Central planning everywhere, in everything and for everyone.

  • FRANCE TO LIMIT EXECUTIVE PAY TO 20 TIMES LOWEST SALARY: FIGARO
  • FRANCE TO CURB PAY OF HEADS OF STATE-OWNED COS., FIGARO REPORTS
  • ECONOMY MINISTRY TO ANNOUNCE DECISION TOMORROW, FIGARO SAYS

Who will be affected:

  • FRENCH PAY CURB AT COS. WITH GOVT MAJORITY STAKE, FIGARO SAYS

So... all French banks soon to quite soon?

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Lost Wages's picture

20 times the lowest salary sounds like a great idea. No man is worth 100s or 1000s times any other man, especially when the people at the top do the least work and the people at the bottom do the most.

MachoMan's picture

Sure, as long as it is limited to state institutions...  in fact, why cap it at 20, let's cap it at 2 and then cut the budget by 10?

Lost Wages's picture

This is similar to Nassim Taleb's idea where he said the heads of bailed-out banks should be treated as government employees and make no more than a government employee in a similar position would make. Once you get bailed out by the government, your private compensation scheme is over.

MachoMan's picture

For as bright as Nasim is...  he forgets the golden rule.

SilverTree's picture

"He who has the gold gets to pee on everyone else."

MachoMan's picture

aka "the greenspan rule" by ayn rand

Tortfeasor's picture

You clearly never read Ayn Rand

MachoMan's picture

@ tortfeasor

Actually, it was a reference to this: http://www.benningtonvalepress.com/2011/10/new-report-details-sexual-rel...

She once implored me to urinate on a pile of her manuscripts, in order to pursue my own happiness and self-interest, which happened to be defiling her ponderous and unlikely fiction. This was integrity according to Ayn -- the non contradiction between my thoughts (hatred of her prose) and my action (soiling her books).

I had also, in the throws of the shared enmity that drove our abusive and degrading coupling, referred to her early concept for ‘Atlas Shrugged’ as ‘Atlas Farted.’ She then demanded that I fart on her, as James Joyce had commanded of his precious wife. Again, I could not. She ordered me to eat crumbs of government cheese from her thighs; and when I did as she directed, I was chastised for partaking in entitlement programs. For those reasons, I came to accept that we would never be together spiritually. But I vowed one day to make Ayn proud.

Fortunate Fool's picture

You forgot this great gem coming out of France:

A small town located in the french alps has decided to no longer pay the interests on a loan.

The geniuses at Dexia (the lending bank), offered the city to renegotiate the terms of the loan to lower the interest payments. This fancy loan was indexed on the Swiss Franc. Within two years, the loan went from 170,000 euros to 636,000 euros (impressive performance for something that was supposed to go down!).

So now the city is telling the Dexia bank to, well, fuck off. The city staff were obviously not experts in complex financial products and derivatives and “trusted” the bankers. They are now arguing that the bank mislead them and they’ve decided to no longer pay the interests on the loan…

They went to court, and (for now) won… I wonder how many municipalities, governments, public bodies, etc. will follow… That’s certainly no good news for the banks!

Here is the news translated by google:

http://translate.google.com/translate?sl=fr&tl=en&js=n&prev=_t&hl=en&ie=UTF-8&layout=2&eotf=1&u=http%3A%2F%2Fwww.lepoint.fr%2Feconomie%2Femprunts-toxiques-une-mairie-refuse-de-rembourser-les-interets-de-dexia-11-06-2012-1472027_28.php

hedgeless_horseman's picture

 

 

What, are the nouveau riche salaries of people with actual jobs starting to scare the owners?

Hey look, everyone, it is a distraction!

 

 

Wake me when they cap state spending at a level below state income.

 

q99x2's picture

She's got testicles. Oh no, that's her face.

falak pema's picture

she has just had her jubilee and is still a royal bag that the whole country feels is worth a bang by a fourteen antler stag, singing god save her family jewels, including her tiara and cullinan-kohinor. 

Harlequin001's picture

You're not very mature, are you?

falak pema's picture

ah the golden rule that Merkel wants all to respect!

zero deficits!

nmewn's picture

Distractions indeed.

So, I'm thinkin President Hollandaise Sauce gets to keep his multi-million euro properties afterall ;-)

Dr. Kenneth Noisewater's picture

Greenspan did, and look what happened..

Dr. Engali's picture

If he read Rand there would never have been a Greespan put.

augustusgloop's picture

gold for the execs, golden showers for the workers. 

Lost Wages's picture

The definition of trickle-down economics.

tmosley's picture

"He who pretends to have the gold has to pee on everyone else to keep up appearances."

SemperFord's picture

While I would agree with this, most GOV employees are overpaid anyway!

Lost Wages's picture

Not quite as overpaid as a bank CEO who gives himself $15 million after ruining the company and getting bailed out by Janky Bernanke.

CommunityStandard's picture

Overpaid CEOs are a symptom of a problem (an annoying problem), but not the problem itself.  Simply let failed banks fail.  Problems solved.

tmosley's picture

That would imply that total compensation would skyrocket, as low and mid-level government employees are paid spectacularly well for some reason.  The top boys there get their money from campaign contributions and kickbacks, of course, so they aren't much different from those CEOs.  But we don't talk about that in terms of taking any sort of corrective action.

jcia's picture

That is the reason why being an entrepreneur is the right way to go if you want to successful. Fuck being a corporate slave. Become the entrepreneur. You own your time, profits and your success.

HoofHearted's picture

If you're the 800 pound gorilla, and you own a majority of the place...then you do what you want to do. That's why it pays to either 1. be the gorilla or 2. own the place and have the ability to keep that gorilla in his cage.

MachoMan's picture

entrepreneurship in america, at present, has a bit of a different slant to it...  in america, you start your own company because your former employer has decided to cut you from the ranks to ensure you receive no benefits and have to work as an independent contractor...  so you then perform the same job for less net pay and they keep the difference... 

In short, I think what you're talking about is only fit in an academic vacuum...

Tortfeasor's picture

You clearly never ran your own company.

MachoMan's picture

actually I have a couple...  and do consulting work for small businesses to multi-million dollar/year businesses...  not sure what you're getting at.

noses's picture

Sure. But please have the decency to starve if you are among the 99,5% losers who don't amount to anything instead of getting social aid from the state.

icanhasbailout's picture

Not anymore. Now the government owns your time, profits and your success. Do the math on the cash flow, once all taxes and government-imposed expenses are taken into account, government grabs a minimum of 75% of your post-subsistence spending power, and often as much as 90%.

CommunityStandard's picture

Except the excessive regulation makes it difficult to start a new business.  It's why the majority of new business are Internet businesses - there's little net regulation.

earleflorida's picture

we'll have to fix that loophole

Bob's picture

Sure, it couldn't have anything to do with expenses, time required or market reach.

That's dipping pretty deep into the anti-regulation excuse bag. 

R U a "job creator" by any chance?

sethstorm's picture

You make the incorrect presumption that success cannot be had as a worker, or that people specialize well at working up through the ranks.

GMadScientist's picture

Like they care...most of their compensation comes in the form of grants and options anyway.

They're laughing at the gullible Mr. Hollande "maintenant".

Lost Wages's picture

Or is Mr. Hollande laughing at the gullible 99% who won't figure this out until it's too late?

Sweet Chicken's picture

....and BINGO was his name-O!

Unprepared's picture

Time to give everybody a raise. They are on government payroll after all.

walküre's picture

Government owned and "options" or "grants" doesn't compute either.

I'm sure Mr. Hollande is only warming up.

Walt D.'s picture

Christiano Ronaldo? Michael Jordan? Tiger Woods?

Buckaroo Banzai's picture

It sounds like a great idea, except of course when the government mandates it, which makes it by definition a shitty idea.

Unprepared's picture

As long as it is limited to government-controlled entities and is straightforward (i.e. we are talking whole package pay for executives), it is a fair idea.

But I bet loopholes are left for lawyers to use.

battle axe's picture

Can you say "Capital Flight"?

augustusgloop's picture

brain  / huevos drain - all the can do frogs are smart enough to crawl out of the cauldron before it cooks them alive. they go to silicon valley if they have a brain, or city of london / new york if they are craven a--holes. e.g. the fabulous fab.