French Deputies Propose Conditions on Executive Pay for Public Business Aid in Budget 2026

A significant amendment has been introduced in the French Parliament aiming to tie public financial aid to a freeze on the remuneration of company executives. This proposal, backed by deputies from multiple political groups including Liot, LR, Horizons, Renaissance, and PS, would require companies receiving public aid to freeze both the fixed and variable components of their top executives' pay. Stéphane Viry, the first signatory and member of the centrist Liot group, described the amendment as an "amendment of appeal" to push forward the discussion on conditionality attached to such aid. This initiative revisits earlier proposals, including Viry’s 2021 report and a 2025 Senate inquiry, highlighting a long-standing concern regarding oversight of public subsidies. The amendment is scheduled for review by the Finance Committee this Wednesday, subject to initial validation procedures.

In parallel, a bipartisan amendment proposes assigning the National Institute of Statistics and Economic Studies (INSEE) the responsibility of cataloging all public aid granted to businesses. This follows revelations from a Senate inquiry led by LR Senator Olivier Rietmann, which uncovered 2,267 distinct public aid schemes, underscoring an urgent need for centralized data management and enhanced accountability. The inquiry also recommended measures creating a "responsibility shock" for companies that continue distributing dividends while benefiting from aid, proposing that public aid amounts be deducted from distributable profits.

These discussions arrive amid broader economic concerns in France, notably a downturn in private sector employment attributed partly to reductions in various aid programs. However, the specific amendments focus squarely on enforcing transparency and fairness in public aid to businesses, particularly by curtailing excessive executive remuneration funded indirectly by taxpayers.