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French limit on fat-cat pay to arrive 'by summer'

AFP/The Local
AFP/The Local - [email protected]
French limit on fat-cat pay to arrive 'by summer'
Najat Vallaud-Belkacem, French government spokeswoman and Minister for Women's Rights, pictured in Paris on November 21st, 2012. Photo: François Guillot/AFP

France, struggling with economic stagnation and spiraling unemployment, will soon have a law to cap the salaries of top earners in the private sector, the government spokeswoman said on Thursday.

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The pay of the heads of state-run firms was already limited last year. Spokeswoman Najat Vallaud-Belkacem said a law on private company salaries would be ready "before summer."

"We want greater transparency in salaries, for example by putting the pay of senior management before the board of directors of big companies who will have to validate them," she told the LCI news channel.

Earlier on Thursday, reports emerged that François Hollande's flagship 75% 'supertax' on France's highest earners could be cut to a significantly lower rate.

Earlier this month Swiss voters overwhelmingly passed a referendum approving limits on high salaries at big companies and banning golden handshakes for executives leaving or taking up posts in Swiss companies.

In response, French Prime Minister Jean-Marc Ayrault indicated that France could replicate the Swiss initiative, saying "I think we must take inspiration from them."

The push by France comes as the country lost nearly 100,000 private sector jobs last year and as the French government fights to keep the economy out of recession.

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