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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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Tue, 06/12/2012 - 16:04 | 2519265 Lost Wages
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.

Tue, 06/12/2012 - 16:06 | 2519275 MachoMan
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?

Tue, 06/12/2012 - 16:08 | 2519292 Lost Wages
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.

Tue, 06/12/2012 - 16:10 | 2519307 MachoMan
MachoMan's picture

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

Tue, 06/12/2012 - 16:11 | 2519319 SilverTree
SilverTree's picture

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

Tue, 06/12/2012 - 16:12 | 2519326 MachoMan
MachoMan's picture

aka "the greenspan rule" by ayn rand

Tue, 06/12/2012 - 16:16 | 2519352 Tortfeasor
Tortfeasor's picture

You clearly never read Ayn Rand

Tue, 06/12/2012 - 16:21 | 2519374 Pladizow
Pladizow's picture

Loop hole: Bonuses?

Tue, 06/12/2012 - 17:35 | 2519641 MachoMan
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.

Tue, 06/12/2012 - 18:19 | 2519763 Fortunate Fool
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

Tue, 06/12/2012 - 16:27 | 2519383 hedgeless_horseman
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.

 

Tue, 06/12/2012 - 16:29 | 2519409 q99x2
q99x2's picture

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

Tue, 06/12/2012 - 16:38 | 2519431 falak pema
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. 

Wed, 06/13/2012 - 05:33 | 2520691 Harlequin001
Harlequin001's picture

You're not very mature, are you?

Tue, 06/12/2012 - 16:31 | 2519414 falak pema
falak pema's picture

ah the golden rule that Merkel wants all to respect!

zero deficits!

Tue, 06/12/2012 - 16:36 | 2519442 CPL
CPL's picture

Internet trannies?

Tue, 06/12/2012 - 16:36 | 2519443 CPL
CPL's picture

Internet trannies?

Tue, 06/12/2012 - 18:18 | 2519757 nmewn
nmewn's picture

Distractions indeed.

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

Tue, 06/12/2012 - 16:38 | 2519454 Dr. Kenneth Noi...
Dr. Kenneth Noisewater's picture

Greenspan did, and look what happened..

Tue, 06/12/2012 - 18:05 | 2519723 Dr. Engali
Dr. Engali's picture

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

Tue, 06/12/2012 - 16:16 | 2519350 augustusgloop
augustusgloop's picture

gold for the execs, golden showers for the workers. 

Tue, 06/12/2012 - 16:19 | 2519366 Lost Wages
Lost Wages's picture

The definition of trickle-down economics.

Tue, 06/12/2012 - 16:31 | 2519419 tmosley
tmosley's picture

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

Tue, 06/12/2012 - 16:12 | 2519324 SemperFord
SemperFord's picture

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

Tue, 06/12/2012 - 16:18 | 2519349 Lost Wages
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.

Tue, 06/12/2012 - 16:24 | 2519390 CommunityStandard
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.

Tue, 06/12/2012 - 16:33 | 2519426 Tortfeasor
Tortfeasor's picture

Nailed it 

Tue, 06/12/2012 - 16:12 | 2519325 tmosley
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.

Tue, 06/12/2012 - 16:06 | 2519277 jcia
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.

Tue, 06/12/2012 - 16:09 | 2519297 HoofHearted
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.

Tue, 06/12/2012 - 16:09 | 2519300 MachoMan
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...

Tue, 06/12/2012 - 16:19 | 2519367 Tortfeasor
Tortfeasor's picture

You clearly never ran your own company.

Tue, 06/12/2012 - 17:42 | 2519647 MachoMan
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.

Tue, 06/12/2012 - 16:11 | 2519312 noses
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.

Tue, 06/12/2012 - 16:11 | 2519318 icanhasbailout
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%.

Tue, 06/12/2012 - 16:14 | 2519340 CommunityStandard
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.

Tue, 06/12/2012 - 16:40 | 2519463 earleflorida
earleflorida's picture

we'll have to fix that loophole

Tue, 06/12/2012 - 17:05 | 2519508 Bob
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?

Tue, 06/12/2012 - 16:28 | 2519407 sethstorm
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.

Wed, 06/13/2012 - 01:23 | 2520523 Savvy
Tue, 06/12/2012 - 16:07 | 2519286 GMadScientist
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".

Tue, 06/12/2012 - 16:09 | 2519299 Lost Wages
Lost Wages's picture

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

Tue, 06/12/2012 - 16:13 | 2519334 Sweet Chicken
Sweet Chicken's picture

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

Tue, 06/12/2012 - 16:14 | 2519339 Unprepared
Unprepared's picture

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

Tue, 06/12/2012 - 17:07 | 2519545 walküre
walküre's picture

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

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

Tue, 06/12/2012 - 16:08 | 2519291 Walt D.
Walt D.'s picture

Christiano Ronaldo? Michael Jordan? Tiger Woods?

Tue, 06/12/2012 - 16:10 | 2519309 Buckaroo Banzai
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.

Tue, 06/12/2012 - 16:17 | 2519359 Unprepared
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.

Tue, 06/12/2012 - 16:14 | 2519343 battle axe
battle axe's picture

Can you say "Capital Flight"?

Tue, 06/12/2012 - 16:21 | 2519379 augustusgloop
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. 

Tue, 06/12/2012 - 16:41 | 2519472 reload
reload's picture

400,000 Froggies in London already. Great tenants for the landlords of Sw7 & W8

Tue, 06/12/2012 - 16:16 | 2519354 DOT
DOT's picture

Why not weigh them. Thin employees may be the next competative edge.

It will also sort out the witches

Tue, 06/12/2012 - 16:58 | 2519523 surf0766
surf0766's picture

And while we are capping. Cap the politicians salary at 60% of what the average person makes.

 

Notice that was not done.

Socialists.. Everyone else gets the pain but me. I am a smart socialists.

Tue, 06/12/2012 - 17:29 | 2519617 pashley1411
pashley1411's picture

The camel's nose is government setting pay for "egalitarian" reasons, and camel's shit is compensation according to political perogative.     You cannot possibly be deluded enough to drink that Koolaid.

Tue, 06/12/2012 - 17:40 | 2519658 Freewheelin Franklin
Freewheelin Franklin's picture

Value is subjective, Marxist pig.

 

Duh.

Tue, 06/12/2012 - 18:13 | 2519741 Eisenhorn
Eisenhorn's picture

"20 times the lowest salary sounds like a great idea."

True, it SOUNDS like a great idea....that is until you read it again.  "...the lowest salary..."

Remember these are banksters.  All this means is that they will now place anyone making less than 200k a year on hourly compensation. 

Problem fixed.  At least for the CEO.

Tue, 06/12/2012 - 19:29 | 2519932 YesWeKahn
YesWeKahn's picture

no man needs to work more than other men.

Tue, 06/12/2012 - 16:05 | 2519268 slaughterer
slaughterer's picture

Looks like the janitors of French banks will be getting a mighty handsome pay hike soon.  

Tue, 06/12/2012 - 16:07 | 2519285 MachoMan
MachoMan's picture

all voids are filled by the state...  including salary lost...

Tue, 06/12/2012 - 16:12 | 2519327 sunaJ
sunaJ's picture

Yes.  I imagine even janitors will be euro millionaires soon...

Tue, 06/12/2012 - 17:41 | 2519662 Freewheelin Franklin
Freewheelin Franklin's picture

I see what ya did there.

Tue, 06/12/2012 - 16:06 | 2519272 GMadScientist
GMadScientist's picture

Of course France could unload their shares...should there be any *cough* complaints.

 

Tue, 06/12/2012 - 16:06 | 2519274 hedgeless_horseman
hedgeless_horseman's picture

 

 

Class warfare always ends (bloody) well.

Tue, 06/12/2012 - 16:06 | 2519279 Spastica Rex
Spastica Rex's picture

Do you know where I enlist?

Tue, 06/12/2012 - 16:11 | 2519304 hedgeless_horseman
hedgeless_horseman's picture

 

 

To fight for the rich you will need to give up your soul, but for the poor you need only give up your morals.

 

Me and mine will sit this one out.

Tue, 06/12/2012 - 16:13 | 2519337 disabledvet
disabledvet's picture

Actually one the problems I've discovered now that I am poor is that I can't lie like I used to.

Tue, 06/12/2012 - 16:44 | 2519351 hedgeless_horseman
hedgeless_horseman's picture

 

 

Yes, but I bet you can still steal, or at least rationalize others doing so on your behalf.

We'll save a spot for you at the table if you also want to sit this war out, DV.  We are going to wait for the main event.

Tue, 06/12/2012 - 16:45 | 2519479 Dr. Engali
Dr. Engali's picture

Now Horseman you know that taxation isn't theft... It's transferring wealth back to its rightful place.

Tue, 06/12/2012 - 17:06 | 2519499 hedgeless_horseman
hedgeless_horseman's picture

 

 

Moral and spiritual exercise are but two of many superior aspects charity holds over socialism.

 

Tue, 06/12/2012 - 16:52 | 2519506 reload
reload's picture

Wise words, but.abstention from side taking is a luxury that few are afforded is times of very serious social upheaval.

Tue, 06/12/2012 - 17:04 | 2519534 hedgeless_horseman
hedgeless_horseman's picture

 

 

May providence, preparation, and forethought bestow that very luxury upon your house and mine. 

Amen.

 

Tue, 06/12/2012 - 17:09 | 2519561 walküre
walküre's picture

Huh? The rich had no morals to begin with. The rule of law has been suspended. Fuck, what rule of law anyway? I'd say the fat pigmen are ripe for the picking. Surely that is morally sound somewhere. Who cares? Anarchy they've asked for, anarchy they will reap.

Tue, 06/12/2012 - 17:42 | 2519669 Freewheelin Franklin
Freewheelin Franklin's picture

To fight for the rich you will need to give up your soul, but for the poor you need only give up your morals.

 

Stolen!

Tue, 06/12/2012 - 16:06 | 2519276 Spastica Rex
Spastica Rex's picture

Count Da Money!

De Monet, De Monet!

Tue, 06/12/2012 - 16:06 | 2519278 junkyardjack
junkyardjack's picture

Best idea I heard come out of Europe in a while

Tue, 06/12/2012 - 16:06 | 2519280 Stuart
Stuart's picture

great idea to do in the US too for any company that receives a Federal bailout....i.e. banks!

Tue, 06/12/2012 - 16:10 | 2519306 Taterboy
Taterboy's picture

also General Motors.

Tue, 06/12/2012 - 16:12 | 2519321 Taterboy
Taterboy's picture

And Solyndra. OOPS! Never Mind.

Tue, 06/12/2012 - 16:18 | 2519361 Thisson
Thisson's picture

I don't believe in government mandates.  Can't we come up with a market-based solution to regulate pay back to reasonable levels?  Shareholders should be able to cap salaries, so let's give them the tools and incentives to do so!

Tue, 06/12/2012 - 16:12 | 2519330 icanhasbailout
icanhasbailout's picture

if the merit of ideas were in play here in the USA, there would have been no bailout to begin with

Tue, 06/12/2012 - 16:13 | 2519332 One eyed man
One eyed man's picture

Yes, but first fire the existing managers. And have clawback provisions to get back their bonuses from previous years.

Tue, 06/12/2012 - 16:07 | 2519284 Divided States ...
Divided States of America's picture

Fuck the Unions and the overpaid Government workers everywhere. Lets hope they do that here in the States.

Tue, 06/12/2012 - 16:10 | 2519303 GMadScientist
GMadScientist's picture

You do realize the "overpaid workers" in this case, are private sector douchebags?

Tue, 06/12/2012 - 16:15 | 2519348 icanhasbailout
icanhasbailout's picture

LOL some "private sector", they wouldn't be in business at all without government-enforced privileges (e.g. fractional reserve banking) and government guarantees (e.g. deposit insurance).

 

The only private things about that sector are the inside scoop on the crimes committed, and the profits of bubble blowing pocketed.

Tue, 06/12/2012 - 16:32 | 2519420 Tortfeasor
Tortfeasor's picture

Government (offers/strongarms/forces) bailouts for private comanies, takes a stake in the company, then sets rules regarding internal workings at those companies. How long till the government starts seizing companies?

Tue, 06/12/2012 - 17:40 | 2519661 MachoMan
MachoMan's picture

Why stop at companies?  Once you accept welfare, et al, then why wouldn't the government also dictate what you can do in your free time, what you eat, and where you live?

Wed, 06/13/2012 - 00:46 | 2520461 LarryDavis
LarryDavis's picture

We are already there bra thought you knew.

Wed, 06/13/2012 - 10:03 | 2521380 MachoMan
MachoMan's picture

We're on the edge/scratching at the surface...  it's coming, for sure...  but we're not there yet.

Tue, 06/12/2012 - 16:08 | 2519287 HYguy
HYguy's picture

Looks like the only thing Mr Hollande's government is able to do at this time; the Euro-treaty renegociation with Mrs Merkel (a pillar of his campaign) didn't go quite as planned...

Tue, 06/12/2012 - 16:08 | 2519290 catacl1sm
catacl1sm's picture

This shit just gets better everyday! I incessantly hit F5 to refresh the page and see what new insanity comes out of Europe.

Tue, 06/12/2012 - 16:12 | 2519331 noses
noses's picture

Ever thought of subscribing to the RSS feed? It won't wear out your keyboard.

Tue, 06/12/2012 - 16:09 | 2519296 i love cholas
i love cholas's picture

Should of done the same for TARP banks

Tue, 06/12/2012 - 16:09 | 2519298 monopoly
monopoly's picture

I wish Europe would finish this already. It is time to move all this across the Atlantic. We have been waiting patiently for our end game. It is time. We can never really move forward until we purge this insane, corrupt, inefficient system of ours.

Tue, 06/12/2012 - 22:13 | 2520199 Grey-Ghost
Grey-Ghost's picture

As long as there are enough small countries to ravage and pillage (think of all the GDP created at home by destroying far away lands abroad) and as long as there are enough dictators / private tirannies et.al. all over the world eager to accept dollars, do not hope for anything.

It took about 12 years for the dollar to fall from 72% of all the money in the world's circulation to today's 62%. They still have all the cards: the reserve currency a.k.a. petro-dollar, protected by the only real military power in the world, insane enough to use it when needed to further their goals.

They can do whatever they want. A hint: coming elections.

Tue, 06/12/2012 - 16:09 | 2519302 One eyed man
One eyed man's picture

Is this a limit on total compensation (including bonuses, corporate housing, auto, and jet, etc.)? Or is it just a limit on base pay?

Tue, 06/12/2012 - 16:10 | 2519308 101 years and c...
101 years and counting's picture

stalin was right.  communism would win.

Tue, 06/12/2012 - 16:15 | 2519341 LetThemEatRand
LetThemEatRand's picture

are you for or against public unions?  If against, you need to actually think before you type because this article is about limiting pay to the top government employees, e.g., state owned companies.  

Tue, 06/12/2012 - 16:32 | 2519423 sethstorm
sethstorm's picture

To ask of consistency:

If you are against public unions, are you also against defense contractors?

If one is against all labor unions, is one also against contractors, consultants, contingent workers, temporary workers, and the like?

 

Tue, 06/12/2012 - 16:37 | 2519448 Tortfeasor
Tortfeasor's picture

Can't I just be against companies owned by the state?

Tue, 06/12/2012 - 16:12 | 2519329 LongSoupLine
LongSoupLine's picture

 

 

 

Another "headline" out of Europe at 10pm their time again?  How odd that it's the same exact time as our market close. sarc/

Tue, 06/12/2012 - 16:13 | 2519336 Walt D.
Walt D.'s picture

Since we are talking here about comapnies where the Government of France is the majority shareholder, they should be free to determine what their execuives are paid. A CEO who is worth more can always move elsewhere, or set up his/her own business.

Tue, 06/12/2012 - 16:35 | 2519428 sethstorm
sethstorm's picture

A CEO who is worth more can always move elsewhere, or set up his/her own business.

You presume that no government exists that has the capability of forcible repatriation/rendition, which effectively nullifies flight.  They can do whatever they wish as long as they can live with the consequences.

Tue, 06/12/2012 - 17:47 | 2519679 Walt D.
Walt D.'s picture

Seth - you are quite right. The US already has rules in place to stop people taking their money out of the country. The EU is getting ready to do the same - they even want to stop people using ATM machines!

Tue, 06/12/2012 - 16:14 | 2519342 magpie
magpie's picture

Brought to you by the 6,66% drop in 10 year OATS today.

Tue, 06/12/2012 - 16:20 | 2519368 LouisCyprien
LouisCyprien's picture

Among compnies listed in the S&P500, the average salary gap between CEOs & lowest salary stood at about 40 to 1 in the 60s, vs 400 to 1 (and more) nowadays, which is imo a little excessive if undeserved.

But 20 to 1 ...it is plain socialism, pure bullshit. 

Tue, 06/12/2012 - 17:04 | 2519535 johnnynaps
johnnynaps's picture

While I don't necessarily agree with a 20 to 1 figure, please explain how this is socialism here?! As far as I see it, it still allows them to be capitalistic. They just have to get off their high horses now and reward the workers too!

Tue, 06/12/2012 - 16:20 | 2519371 CommunityStandard
CommunityStandard's picture

They'll find a way around it.  They always do.  Some kind of deferred compensation or stock options.  Maybe create something completely new, like a "CEO trust" where the pay goes to a managed trust to pay out an income stream to the CEO's family.

Tue, 06/12/2012 - 16:46 | 2519381 Joebloinvestor
Joebloinvestor's picture

How come this doesn't apply to: actors, rock stars or any other artist that gets subsidies from the French government?

I really want to see the person they take that 75% from.

Tue, 06/12/2012 - 16:25 | 2519395 outamyeffinway
outamyeffinway's picture

Everyone gets a raise now!! Welcome hyper-inflation!!

Tue, 06/12/2012 - 16:27 | 2519400 TheAkashicRecord
TheAkashicRecord's picture
France To Cap State-Owned Company Executive Pay

Why exactly is this a bad thing if state-owned companies have exec pay capped?  I am all for this (note: I am not discussing the merits, or lack thereof, of the state owning the company). 

Also, ask yourself what the difference is between the government owning a company and the government securing the income streams of privately owned corporations with public money.

Tue, 06/12/2012 - 16:28 | 2519405 Seasmoke
Seasmoke's picture

good time to be a bank teller !

Tue, 06/12/2012 - 16:31 | 2519411 mayhem_korner
mayhem_korner's picture
  • FRANCE TO LIMIT EXECUTIVE PAY TO 20 TIMES LOWEST SALARY: FIGARO
  •  

    This is code for "we are going to fire 20% of the lowest paid workers and give the remaining ones a 10% pay raise."  

    Tue, 06/12/2012 - 16:36 | 2519441 sethstorm
    sethstorm's picture

    The problem is that won't fly in France with their worker protection laws.  Even with all the indirection of workers through staffing agencies, those companies are truly up a creek.

    Tue, 06/12/2012 - 16:31 | 2519415 elwu
    elwu's picture

    "TO LIMIT EXECUTIVE PAY TO 20 TIMES LOWEST SALARY"

    Perfect.  Now, when will the anglo-saxon socialists (this are the finace industry top shot guys who see it fit that a top exec gets say 10.000 times more than the lowest salary in his company, but if the company goes bust, beg the taxpayers for help) acknowledge that it is not a good idea to keep their ponzi schemes up and running forever?

    Tue, 06/12/2012 - 16:32 | 2519416 q99x2
    q99x2's picture

    Be the only employee and then use subsidaries and contractors.

    Tue, 06/12/2012 - 16:39 | 2519457 sethstorm
    sethstorm's picture

    Which can be solved by making it no less of a regulatory burden to bring on contractors, subsidiaries or the like.  In addition, one can prohibit the requirement of working as a contractor/through a subsidiary/temporary worker - as a condition of accepting work.

     

    Tue, 06/12/2012 - 16:37 | 2519447 theTribster
    theTribster's picture

    Does France still force labor on the Board of Directors? I think France actually requires that a member (or more) from the work force (non salaried?) has a seat on the BoD. This would seem like a great rule for corporate construction. I've also heard that there are places now considering democratizing the workplace, this would translate to major decision being voted on - again, that seems like a pretty good idea. Companies are structured in a dictitorial way so why not democratize tham a bit and see how that works...

    This move in France was expected because he described it in his campaign. There's much more central planning to come in France if the elections (parliamentary) go the way the polls are suggesting (Hollandes party does extremely well). This weekend represents a sort of super bowl of European politics given the two major elections - both of which will have a big impact on the markets. I'd like to see Marine Le Pens party (National Front) surprise everyone and win enough seats to be relevant - apparently that isn't likely. Here's a good place to watch the France situation:

    http://www.france24.com/en/aef_player_popup/france24_player#

    They will cover the Greeks as well, you seem to get a better persepctive when you hear from the people there as opposed to our main stream media. I doubt my local Philly news will even mention either election as they wont have time after describing several crimes, a few fires and then some bullshit public interest story. There is absolutely no reason to watch the MSM, used to be for the weather but not anymore.

    Wait until France needs a bailout, that will certainly put the kabosh on the EuroZone if Spain, Cyprus and Italy don't. Yahoo jad a story today (daily ticker) describing how Merkal now controls the destiny of financial markets everywhere. Just today she made it clear that the EuroZone interests do not necessarily coorelate with the interests of investors, that's a pretty clear sign where her head is at.

    Tue, 06/12/2012 - 16:38 | 2519450 Pairadimes
    Pairadimes's picture

    Non-story. This is just rearranging the deck chairs on the Titanic. State-owned businesses are doomed almost by definition, and at best are introducing all manner of distortions into the marketplace by their very existence. The issue isn't whether pay for these execs should be limited as a matter of state policy. It is that the state should not have a stake in them in the first place.

    Tue, 06/12/2012 - 17:01 | 2519526 Zola
    Zola's picture

    Good incentives for the banks NOT to seek a bailout hehe :) 

    Expect to see private sector capital raises by SG and BNP ? Actually this should have been 10 to 1 just to make it clear that the public sector is NOT about getting rich or milking it. Go play in the real economy in the PRIVATE sector and then yes you can get whatever your shareholders let you get away with ...

    Tue, 06/12/2012 - 17:15 | 2519579 walküre
    walküre's picture

    Yup, there goes the talent. I can already see the long lists of highly qualified super executives that will quit their jobs and go apply for better jobs and better pay somewhere else. After all, these individuals are so talented and so smart that they must be paid whatever they ask for, right?

    I've sat on a few board meetings and council meetings where this scheme was brought up that we were supposed to agree to the pay for these highly qualified individuals or we would be losing them to the competitor. Ask me how many of these competitors are still around or how healthy their balance sheets are.

    What? Highly paid talent doesn't equate higher revenues and income?

    Tue, 06/12/2012 - 17:19 | 2519592 hedgeless_horseman
    hedgeless_horseman's picture

     

     

    Highly paid talent doesn't equate higher revenues and income?

    It does in porn.

    Tue, 06/12/2012 - 18:02 | 2519716 sethstorm
    sethstorm's picture

    Where it pays to *be* the long position instead of taking the long position.

    Tue, 06/12/2012 - 18:15 | 2519745 BidnessMan
    BidnessMan's picture

    Actually not a bad idea. Top executive at a government owned business - Talent or political juice? I remember all the whining and moaning that million dollar banker bonuses had to be paid or else they would lose the "talent". The talent that blew up the bank to start with. Good riddance! Go off and find another job that pays a million dollar comp. Fine if the door smacks your ass on the way out.

    Giant exec salaries don't equate to performance. Boo hoo hoo. If 20 times the minimum salary is not enough, then quit. Go find someone who will pay more, or put your own money on the line and start your own business. Time to stop confusing bureaucrats with business talent. Very little overlap.

    Tue, 06/12/2012 - 17:20 | 2519596 surf0766
    surf0766's picture

    This should speed up the 2 month timeline for France to fail to 2 weeks?

    Tue, 06/12/2012 - 17:48 | 2519686 Zero Govt
    Zero Govt's picture

    this takes France back decades in a matter of minutes 

    if Hollande wants "growth" he has a funny way of incentivising enterprise with the politics of wage caps

    he's very un-Obumma-like in that he carries out what he says ...but this is ultimately very scary for France if he carries on ..last one out switch the lights off!

    Tue, 06/12/2012 - 17:38 | 2519649 robs98ss
    robs98ss's picture

    The easier solution here is to leave executive pay unchanged and just raise the minimum wage much higher.

    sarcasm

    if you can vote people rich, lets do it.

    They are doing great over in France.

    Tue, 06/12/2012 - 17:38 | 2519651 Zero Govt
    Zero Govt's picture

    "Central planning everywhere, in everything and for everyone."

    Yipee

    worked wonders for Russian agriculture (20m starved) and Chinese agriculture (another 30m starved to death)

    Renaults and Peugeots should look like Trabants in no time

    'Back to the Future' and the wonders of a Communist lifestyle

    Tue, 06/12/2012 - 18:04 | 2519717 sethstorm
    sethstorm's picture

    I believe you're looking for the world that Highlander 2 portrayed.

    Tue, 06/12/2012 - 18:05 | 2519719 slavador
    slavador's picture

    Russians/Ukrainians were ethnically clensed by starvation for belonging to the wrong religion. It had nothing to do with the production of food. Citizens of any country that is controlled by the same group that ran the Soviet Union (they've all migrated westward) might be shot/starved if it fits the plan. Thankfully the ethnic/cultural decendants of Trotsky/Kaganovich have a plurality in only one small place presently. They are increasingly powerfull in most other nations and with their cultural ideology echo'd by Harris/Dennett and economic approach presently infesting Goldman Sachs.

    Tue, 06/12/2012 - 17:38 | 2519655 savagegoose
    savagegoose's picture

    fuck em if theyre on gov subsisdies, to exist, then they get gov pay. if they want a real wage, go get a job in the real world.

    Tue, 06/12/2012 - 19:27 | 2519923 americanspirit
    americanspirit's picture

    Exactly what is a state-owned company? The concept simply escapes me. State-owned. Company. Just doesn't work for me. Make that - just doesn't work for anyone.

     

    Tue, 06/12/2012 - 19:30 | 2519935 IMA5U
    IMA5U's picture

    So this makes only stupider or desperate people to want to work for the French State

     

    Short France

    Tue, 06/12/2012 - 23:26 | 2520319 monad
    monad's picture

    You mist hab a leessanz for your minkey

    Tue, 06/12/2012 - 23:26 | 2520301 monad
    monad's picture

    France capitulates to Germany

    French government drinks the koolaid, everyone still in France dies, as imports go to 100%

    Now we are going to have a bunch of French bankers to blame, other than SocGen

    Never trust the French

     

    Tue, 06/12/2012 - 23:25 | 2520316 Peter K
    Peter K's picture

    French government owned company CEO's will be reaching for the Freedom Fries:0)

    You just can't make this stuff up.

    Tue, 06/12/2012 - 23:45 | 2520359 andyupnorth
    andyupnorth's picture

    Didn't Plato set the limit to 4x?

    Wed, 06/13/2012 - 00:01 | 2520391 monad
    monad's picture

    Plato was a fascist.

    A public masturbator named Diogenes obsessively follow him around the mall, correcting his flawed logic while not missing a beat working his skin flute. This wasn't what made Plato the self absorbed megalomaniacal misanthrope he became. What made Plato lose it was the fact that the people loved Diogenes more than him. Diogenes, a beggar who slept in a barrel and chronically spanking willie. The Republic was just Revenge, as is the claim that Diogenes was a cynic. I don't think so...

    Wed, 06/13/2012 - 05:26 | 2520685 falak pema
    falak pema's picture

    Thats like looking at history and key players who made it; in the realm of logic, political science and philosophy; through a key hole! 

    You could write a script for a Hollywood movie from that perspective and it would sell with Tom Cruise and Al Pacino. 

    But what sells it what smells spicy; and keyhole attitudes are spicy. But what counts over time is the substance. And "fascism" in not an appropriate  label for a philiosopher who wrote the first book of political science; even if he had a penchant for the elites and saw in the philosopher king the ideal leader of nation. His contribution to political science and philosophy by its methodology goes so much further than what were his own personal inclinations. Its like saying Socrates was a lousy scam as he was attracted to beautiful men, more so than beautiful women. A bit shallow as reasoning, even if living in a barrel is an original way of showing you are unique as contrarian; which Diogenes undoubtedly was! 

    The Republic has spawned many awesome children, like it or not, that's History! 

    Wed, 06/13/2012 - 10:12 | 2521356 monad
    monad's picture

    I'll bat for Diogenes. Plato was emo and is way, way over rated. Some of Plato's disciples: Adolf Hitler, Jor-El Stalin, Engels & Marx and their progeny, the catholic syndicate, the Bushs, and Darwin & Hobbs. I don't regard parroting as proof of intelligence. All pedastals in the Church of Reason reflect the extent to which the academy has been subordinated by politics. Idolatry is for second handers; looters.

    If banking theory was based on Aristotle we'd be better off. What history do you mean? My State taught me one history, then I learned the versions of several other States and finding only methane, chose math fired in the crucible of engineering over less durable vapors. I respect great ideas, everyone else is judged by their fruit.

    Show me your friends and I'll tell you who you are. Plato was an ass kissing cunt. Just like Keynes, he sold out his ideals & told the lies he was paid for. For an individual to do this is no big deal, but when you espouse policies others must live by, its entirely unacceptable. You might recall that The Republic was written under a tyranny. Anything not rationalizing State power would have been a death sentence. To tell the truth and live free, sometimes one must play the fool and give credit to the undeserving. Plato was too insufferably proud of his toys in the attic, reigning in his own make believe. Diogenes got away with telling the truth, and with celebrating it in the real world. 

    Regardless of Plato's human weaknesses, his ideas were obsoleted by the French political philosophers who inspired the Age of Reason. Thomas Jefferson > Plato. Diogenes on the other hand, lived every day to the fullest. He lived well and gathered wisdom, honor and friends in his account, not the blood of others, as have Plato's Machiavellian master's and followers. Timothy Leary ~ Diogenes as G Liddy ~ Plato.

     

    Wed, 06/13/2012 - 00:35 | 2520447 LarryDavis
    LarryDavis's picture

    I'm actually in favor of this. Some dipshits will say" What about Brett Favre or someone who has a secial skill set why not let the market determine his her wage? Who are you to set a price?" My answer is simple. There are no markets left and CEO's should make less. In fact, everybody who gets paid alot should take a cut. Capitalism isn't working presently and I'm not sure if it ever did work. Whether markets are efficient or not is really something for people with PhDs to banter about. I need markets to make sense and in this setting the inefficient outcome makes much more sense.

    Wed, 06/13/2012 - 00:58 | 2520473 JuicedGamma
    JuicedGamma's picture

    You agree with a French socialist economic policy?

    Good luck with that.

    Wed, 06/13/2012 - 02:15 | 2520599 LarryDavis
    LarryDavis's picture

    Whose economic policies are you liking these days? Obama? Romney? Mitch McConnell? Is socialism worse than capitalism? Your values might be different than mine. 

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