2023-10-29 16:00:08
The Minister of the Economy, Bruno Le Maire, recently announced a measure aimed at making share buybacks fairer. A practice whose principle is to keep your own shares by buying them back on the market. Thus, he calls on companies affected by the share buyback to review their profit-sharing agreements.
Share buybacks are increasingly being adopted by companies and their impact can be significant on value sharing. The Minister of the Economy announced that companies practicing share buybacks should reopen their profit-sharing and participation agreements. “ When a company has the means to buy back shares, it will be obliged to reopen profit-sharing and participation agreements and to give more to employees with always the same logic: work must pay “, he declared on the microphone of BFM Business.
Share buybacks have almost doubled in one year
The measure proposed by the Minister of the Economy is part of a divided debate. Some have argued in favor of a higher tax on these operations, such as MoDem. Jean-Paul Mattei states that “ share buybacks have increased considerably in France and internationally in recent years and have almost doubled over one year “. According to him, the situation is problematic in the sense that these operations “ largely serve short-term objectives “, to know ” remunerate shareholders in addition to the payment of dividends, support the stock price or even increase earnings per share ».
On the other side, Jean-René Cazeneuve (Renaissance) expressed his opposition to higher taxation, stressing that the buyback of shares is not a practice ” reprehensible » in itself. He argued for another approach: “ What is important to us is sharing value. I hope that the government will come to the chamber with a taxation proposal” limited to companies that do not “would not do this sharing of value ».
The Minister of the Economy also raised the question of reductions in charges for salaries between 2.5 and 3.5 times the minimum wage: “LThe reduction in charges, it works, we have created two million jobs thanks to it » since 2017. However, he stressed that the cost of these reductions has increased and now weigh more on the State. The reason, according to him, is that the minimum wage is indexed to inflation, which has increased significantly.
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