Abstract

The literature on executive compensation, in tandem with the literature on corporate governance, has largely concentrated on the US, the UK and Germany; relatively little has been published concerning these issues in France. Executive compensation is, of course, closely related to the structure of corporate governance, and this differs significantly in France from that in the US, the UK and Germany. Traditionally very little information has been made publicly available on executive compensation in France, but this practice is coming under pressure with increasing foreign investment in French companies. This article looks at the corporate governance structure in France and its relation to executive compensation practices. It presents and discusses the available data on executive compensation, in particular looking at the use of stock options and the like. This insight into executive compensation in France provides an interesting comparison with practices in other leading European countries such as the UK and Germany.

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