MPs vote caps on golden parachutes

LIMITS to generous payments often made to retiring directors of big business and senior executives have been voted in by MPs.

Parachutes dorés (golden parachutes) and retraites-chapeau (special top-ups to pensions) are restricted in the new rules, voted in an amendment to next year’s budget law.

The former must not be more than twice as much as the highest amount set for compensation of a worker who is laid off, while the latter should be no more than 30 per cent of the last year’s salary.

Budget Minister François Baroin had opposed the changes, claiming that a code of practice adopted by big business last year was sufficient, and that the new rules may limit the ability of French firms to attract top talent.

Socialist MPs welcomed the move, saying they had been calling for it since last year. The (Socialist) president of the National Assembly’s Finance Commission, Jérôme Cahuzac, has previously spoken out about the huge retraites-chapeau gained by the bosses of Dexia and Alcatel-Lucent, who left their firms in a precarious state.

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