What create a beautiful controversy between the government and its opponents. To find a new CEO at EDF, the executive runs a strong risk, as revealed by Les Echos, of having to remove the ceiling on the remuneration associated with the position, now set at 450,000 euros, an amount decided in 2012 by decree by François Holland for all the bosses of public companies (RATP, SNCF, ADP…). In a France where the average salary amounts to 2,340 euros net per month and at a time when galloping inflation is cutting into the purchasing power of the French, it is clear that public opinion will legitimately find it difficult to understand such increase to remunerate the boss of a public company which multiplies the industrial and financial setbacks. Even less the argument that these 450,000 euros are insufficient to attract a big boss. It is however, alas, a reality with regard to the remunerations in force in the large companies of the CAC 40. Without any executive function, the chairmen of the boards of directors of certain companies of smaller size than EDF already earn as much as the CEO of EDF. As for those who hold the positions of both president and general manager, their level of remuneration is much higher. For example, Patrick Pouyanné, CEO of TotalEnergies earned nearly 6 million euros last year.
An extremely complex roadmap
So how do you convince an industrialist to take the reins of EDF when he is now earning 10 times more, or even more, in his business? And this, while he will have to lead one of the most strategic companies in the country with an extremely complex roadmap to execute, all with the State as the sole shareholder permanently on the back.
The future boss of EDF will indeed have the task of taking over the production of electricity in the short term and succeeding in the longer term in the revival of the tricolor atom, which involves the construction within 20 years of 6 new EPRs. In other words, to carry out the largest civilian nuclear program ever seen in the Western world for 40 years. Admittedly, working for France’s energy independence is certainly an exciting challenge to take up, but not sure that the sense of the State is a sufficient argument to convince the most undecided. “You don’t catch flies with vinegar,” confides an expert on the matter.
The example of Ben Smith at Air France-KLM
Not everyone is Jean-Bernard Lévy, the current boss of EDF, who agreed, when he was appointed in 2014, to halve the remuneration he received at Thales. This question of the level of remuneration is crucial for the future of public enterprises. Even if Air France-KLM is a private group, the example of the compensation of the current CEO, Ben Smith, bears witness to this. In 2018, when the State, a 14.6% shareholder at the time, sought a successor to Jean-Marc Janaillac, he had to accept that the group quadruple the remuneration of the new Canadian leader, to 4 million euros . And once more, at this price, Air France-KLM was only able to recruit the number 2 of Air Canada, a company smaller than that of KLM. The number 1s of comparable companies, such as Lufthansa or IAG, were paid much more.
