The average total compensation of bosses in the CAC 40 index increased by 52% in 2021 and reached a fifteen-year high of 7.9 million euros, more than 100 times the average compensation of employees, according to a report. published this Tuesday, November 22 by the Proxinvest firm.
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The firm finds a “post-health crisis rebound” with “a sharp increase in median and average earnings in all indices [CAC 40 et SBF 120 sur les 120 plus grandes sociétés cotées en France, NDLR]we are of course on historic records »said Jehanne Leroy, director of ESG research (environmental, social and governance criteria) during a videoconference with the media.
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Over 100 times employee compensation
This increase is also due to a “Carlos Tavares effect [directeur général du groupe automobile franco-italo-américain] Stellantis » whose remuneration reached a record for a manager according to Proxinvest, at 66.7 million euros (19.15 million euros according to the company).
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“It is the first time in fifteen years that a company has presented total compensation of more than 50 million euros”assures the report.
It is also “the first time in eight years that the average compensation of CAC 40 executives is more than 100 times the average compensation of employees”adds the same source which detects a less good respect of the ceiling of maximum socially acceptable remuneration (5.12 million euros) of Proxinvest.
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The figures for 2021 have been compared to those of 2019 before the health crisis, and not 2020 which is considered to be an unrepresentative year given that a number of managers have waived part of their remuneration.
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The CEOs of Stellantis and Dassault in the lead
The firm, which issues voting recommendations to shareholders for general meetings, found that since 2021 all CAC 40 companies now have ESG performance conditions in one of the CEO’s variable compensation packages.
The trio of highest paid executives is made up of Carlos Tavares from Stellantis (66.7 million euros), Bernard Charlès from Dassault Systèmes (44.1 million euros including 40.8 million in shareholder remuneration) and Daniel Julien from Teleperformance (€19.6 million).
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The report values all forms of executive compensation: fixed, annual bonus, fees, benefits in kind, stock options and free performance shares valued on their grant date, cash incentives and other indirect forms of compensation.