Abstract
- In the second year of French say-on-pay votes, there was increased shareholder voting dissent, including at several CAC40 companies. Even a number of standard remuneration-related items, which had previously received high levels of shareholder support, received a significant number of votes against this year.
- The Florange Act (introducing the end of the “neutrality principle” and the automatic granting of double-voting rights) registered high investor opposition. Maintaining the “one-share, one-vote” principle triumphed at most companies that had such proposals on ballot. Even among the few exceptions where proposals to maintain one-share, one-vote standards were defeated, the level of shareholder support for this principle remained high; these companies were most notable when either management, or the French state as a significant shareholder, was not in favor of the proposal.
- The Macron Act, enacted on Aug. 6, 2015, continues the regulation of governance and compensation practices in France, and impacts the legal framework of executive compensation, in particular affecting additional pension schemes and restricted stock plans.
