Executive compensation and employee benefits—France—Q&A guide

The following Share Incentives practice note provides comprehensive and up to date legal information covering:

  • Executive compensation and employee benefits—France—Q&A guide
  • 1. Provide an overview of the primary sources of law, regulation and practice that govern or affect executive compensation arrangements or employee benefits.
  • 2. What are the primary government agencies or other entities responsible for enforcing these rules?
  • 3. Are any types of compensation or benefits generally subject to specific corporate governance requirements or approval by shareholders or government agencies? What is the general process for obtaining approval?
  • 4. Under what circumstances does the establishment or change of an executive compensation or benefit arrangement generally require consultation with a union, works council or similar body?
  • 5. Are any types of compensation or benefit arrangements prohibited either generally or with respect to senior management?
  • 6. What rules apply to compensation and benefits of non-executive directors?
  • 7. Must any aspects of an executive’s compensation be publicly disclosed or disclosed to the government? How?
  • 8. Are employment agreements required or prevalent? If so, what provisions are common? Are any terms prohibited or unenforceable?
  • 9. What are the prevalent types and structures of incentive compensation? Do they vary by level or type of organisation?
  • More...

Executive compensation and employee benefits—France—Q&A guide

This Practice Note contains a jurisdiction-specific Q&A guide to executive compensation and employee benefits in France published as part of the Lexology Getting the Deal Through series by Law Business Research (published: November 2020).

Authors: Flichy Grangé Avocats—Florence Aubonnet; Stéphanie Dumas; Camille Ventéjou

1. Provide an overview of the primary sources of law, regulation and practice that govern or affect executive compensation arrangements or employee benefits.

In France, the term ‘executive’ includes managers, directors and employees whose functions include a management duty without necessarily being part of the company’s management. For the purpose of this chapter, ‘executive’ will refer either to company officers who are not employees subject to the French Labour Code but to the Commercial Code, or to upper managers holding a work contract who are subject to the Labour Code.

Where the executive holds an employment contract, his or her minimum compensation arrangements will be governed by the Labour Code and the applicable sectoral collective bargaining agreements, usages or unilateral employer decisions, and internal rules of a company as for any other employee. In practice, the main source of compensation will be each individual work contract.

2. What are the primary government agencies or other entities responsible for enforcing these rules?

Labour courts have exclusive jurisdiction for litigation matters arising from work contracts (hence, issues on contractual compensation and benefits). The Ministry

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