France plans pay cap at state firms

The French finance minister has unveiled a plan to cap the pay of top executives at state-owned companies at €450,000.

The pay cap was part of president Francois Hollande’s campaign pledge to rein in corporate excesses, which he blames in part for the financial crisis.

The move affects only a fraction of French executives, but includes such well-known state-run companies as the SNCF railways, La Poste postal service and EDF electric company.

Finance minister Pierre Moscovici said at a press conference the cap will be instituted across all state-owned companies by the end of the year.