Posted Nov 22, 2022, 5:47 PM
He’s never seen anything like it! In 2021, CAC 40 managers earned an average of €7.9m, more than 100 times the salaries of their employees; Those of SBF 120, €4.5m. Either way, this is a record, according to Proxinvest. In 2019, CAC 40 giants’ chiefs earned an average of 76 times more than their employees.
In its annual report, the shareholder advisory firm noted, on Tuesday, a sharp increase in executive compensation. In the CAC 40, it increased by 52% compared to 2019; at SBF 120, 22%. Compared to 2020, the increase was greater, but it will not be significant because in that year, a very large number of leaders gave up part of their salaries to participate in the “national effort” and prove the “model” in health. crisis.
This sharp increase in wages does not come from fixed salaries, even if for the leaders of the CAC 40 they (€1.2 million) are advancing faster (+4.2%) than inflation (+1.6%). This is mainly due to the strong increase in annual bonuses (+33.6% in CAC 40 and +19.9% in SBF 120, still compared to 2019) and long-term equity compensation (+39.6% in SBF 120).
An average annual bonus of 1.864 million
On average, the CAC 40 president has an annual bonus of €1.864 million and performance shares for €3.8 million. Carlos Tavares Received highest annual bonus of SBF 120 in 2021, €7.4m . Stellantis CEO, born of the merger of Fiat Chrysler Automobiles (FCA) Group and PSA, also received €32.1 million in equity in multi-year compensation. But there it was, Bernard Charles of Dassault System, with €40.8m of allotted shares, who won the prize. Bonus stocks (or performance shares) are usually conditional on achieving predetermined goals. But Proxinvest found that in Stellantis this is not the case for the payment part in shares. If the group had its headquarters in France, it would be in breach of Afep-Medef, but Stellantis is not a company under French law.
Carlos Tavares leads the standings
In all, Carlos Tavares leads the ranking of the highest paid boss in the SBF 120, earning €66.7m in 2021 (19.15m according to company figures but methods for evaluating stock performance vary). Very rarely, last April, the meeting of shareholders in the General Assembly refused to pay him but the company is not based in France, and this refusal is without consequences.
Dassault Systèmes CEO Bernard Charles is second in the ranking with total compensation of €44.1m, up 114%. Finally, third on the podium, Daniel Julian, Teleperformance CEO They received 19.6 million euros in damages. He was awarded a fixed compensation (€2.2m) which is the highest in the CAC 40, and an annual bonus paid to the maximum.
To determine its ranking, the Proxinvest report takes into account all components of compensation: fixed annual bonus, multi-year long-term compensation, stock allocation valued on the date of their allocation and benefits in kind.