France mulling law to cap private sector salaries

PARIS (AFP) - France, struggling with economic stagnation and spiralling unemployment, will soon have a law to cap the salaries of top earners in the private sector, the government spokeswoman said Thursday.

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 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.

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.

Join ST's Telegram channel and get the latest breaking news delivered to you.