The Evolution of CEO Pay in French Listed Companies

The highest levels of CEO pay trigger public outrage on a regular basis. A panel of large French listed companies show that these most outrageous levels of pay do not exhibit an upward trend during the 2001-2016 period. On the contrary, the equity-based part of these pays tends to recede since their fair values have been publicly disclosed. On the opposite side, CEO pay rose tremendously in less exposed firms. While public opinion focuses on the highest levels of pay, below-average CEOs catch up with their peers and in the end, they significantly contribute to rising income inequalities. Overall, cash pay rose significantly during the observed period. Market forces, such as pay competitiveness on the market for CEOs and shareholder pressure to increase performance-based components, partly explain rising managerial pays.