Hollande to clamp down on fat cat pay

[Celefin]

Source: Guardian

France's new socialist government has announced an immediate, dramatic clampdown on fat-cat pay, promising to cap the salaries of chief executives at state-owned companies which could see top pay-packages slashed or halved.

The president François Hollande vowed during the election campaign that in majority state-owned companies, the highest salary must not be 20 times more than the pay of the lowliest worker. The squeeze on state fat cats, expected to be enacted by decree next month, is part of the new government's quest for France to set a moral example in a crisis-hit Europe where top earners' stratospheric pay packages and benefits has exasperated workers and voters. The measure will sit alongside Hollande's promised new top tax rate of 75% on income over 1 million euros, which is extremely popular among the French public, and which he has described as an act of "patriotism" and "morality". Socialists brushed aside criticisms from the right that state pay-caps could make it difficult to recruit from private sector.

The prime minister Jean-Marc Ayrault, aware of the unease at fat-cat excesses weeks before the parliament elections, took a hard line, announcing in an interview with the weekly L'Express that the executive pay-cuts would apply to those already in their posts rather than only new contracts. "I believe in the patriotism of company leaders. They can understand the crisis requires the political and financial elite to set an example". The president and cabinet have cut their own pay by 30%.

Read more: http://www.guardian.co.uk/world/2012/may/30/hollande-france-clamp-down-fat-cat-pay

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A politician fulfilling an election promise against vested interests!
Now let's see all that 'talent' leaving for greener pastures.

[nxylas]

1. It's the politics of envy!

It'll lead to terrible consequences for the people of France once the wealth stops trickling down

[dotymed]

2. KNR +1000 n/t

[Mr.Turnip]

3. Should specify it's on Majority Government owned companies only in the thread title.

Big difference between capping the pay of however many of those 52 companies with Government stakes the Government owns the majority of and capping the pay of CEOS and the like of all French companies, which if legal would require legislative action.

This is a good symbolic move by Hollande though.

[DCKit]

11. Yeah, but once they've established a benchmark, CEO pay at the private companies...

is going to look (even more) obscene.

[fasttense]

4. 75% tax rate for the uber rich is just a start. I think it should be 90%

Squeeze the fat cats until the bleed and leave. Let the greedy, selfish rich traitors leave the country so the average citizen can run the country like a democracy is suppose to run.

Force those fat cats to go Galt and see how long they last without their wage slaves.

[lunatica]

5. I guess they'll have no recourse but to find 'talent' among regular people

Imagine that.

[Demit]

6. I like how he references their patriotism. That's what we should do.

[JNelson6563]

8. Yes, exactly.

[pampango]

15. Reich has said as much.

True Patriotism

True patriotism isn’t cheap. It’s about taking on a fair share of the burdens of keeping America going.

Those who earn tens of millions of dollars a year but pay less than 14 percent of their incomes in taxes, and argue the rich should pay even less, are not true patriots.

Those who defend indefensible tax loopholes, such as the “carried interest” loophole that allows private-equity managers to treat their incomes as capital gains even if they risk no income of their own, are not true patriots.

Those who avoid taxes by putting huge amounts of their earnings into IRAs via foreign tax shelters are not true patriots.

Those who want to cut programs that benefit the poor — Food stamps, child nutrition, Pell grants, Medicaid — so that they can get a tax cut for themselves and their affluent friends— are not true patriots.

http://robertreich.org/post/23939689167

[ChangoLoa]

7. In very short time Hollande has shown determination and efficiency

Let's see if he keeps on with the good vibes after the legislative elections...

[fruitsmoothie45]

9. Considering moving to France. n/t

[onehandle]

10. There might be a stampede to do so after November. nt

[ladjf]

12. Good move Mr. President. nt

[CreekDog]

13. he won't be pleased

[pampango]

14. Another campaign promise to be fulfilled: lowering the retirement age

France's new Socialist government will push ahead with plans to lower the pension age for people deemed to have worked long enough, Finance Minister Pierre Moscovici said on Thursday, defying an EU warning on the cost of the retirement system.

President Francois Hollande, who took office this month, plans to partially roll back that reform, which raised the retirement age by two years. His main aim is to reestablish the right to retire at 60 on a full pension for people who started work as young as 18. “It will be done and it will be done in the coming weeks,” Moscovici said on France Inter radio.

Hollande is under pressure from rising unemployment as the euro debt crisis adds to pressures on the economy.

In addition to the initial changes, Hollande's government wants over time a broader overhaul of the retirement system and its financing, with talks due to start in the coming months with trade unions and employers.

http://www.iol.co.za/business/international/france-rebuffs-eu-warning-on-pension-reform-1.1309025

[suffragette]

16. This almost made me cry

Making a change because it's the humane way to proceed rather than bowing to the incessant drumbeat of financing the upper classes prosperity through the lower and middle classes austerity.

And people being able to retire after putting in all those years of work should potentially open more jobs for younger people.

This should be an OP.

I want to recommend it.

[suffragette]

17. Oh noes! But they won't be able to hire the "talented people" like the ones Dimon did for JP Morgan

You know, the ones who lost - is it 2 or 3 billion by now?

Maybe more since Morgan is apparently selling off profitable securities to keep the balance sheet from showing the full loss.

http://www.chicagotribune.com/business/breaking/chi-jpmorgan-dips-into-cookie-jar-to-offset-london-whale-loss-20120529,0,7049067.story



K&R to Hollande for following through and starting off with theses actions and to Celefin for posting this.

[qb]

18. Hollande is giving Socialism a good name!