News Summary: France won't force executive pay cap
As France tries to woo disillusioned companies, finance minister backs off bid to cap CEO pay
PROLETARIAT BOURGEOIS: Finance Minister Pierre Moscovici said that the government no longer plans to push for a law to cap executive salaries in the private sector. Instead, Moscovici told reporters that he was in discussions with business leaders and he hoped companies would agree to institute their own limits.
CEOs UNITE: The Socialist government last year cracked down on what it viewed as excessive pay for executives at a time when employees are losing their jobs or being asked to take pay cuts. It imposed limits on executive pay at state-run companies, and initially pledged to do the same in the private sector.
HOLDING THE LINE ... OR NOT: It's not the first time the government has pulled back from a measure that pleased the Socialist Party's left wing but infuriated others. President Francois Hollande made an important about-face on a hike to the capital gains tax rate that entrepreneurs said would take away all incentive for starting new businesses. Last month, Hollande announced that entrepreneurs selling their businesses would get big tax breaks instead.
