28.04.2020Myriam de Gaudusson, Numa Rengot

When CEOs take pay cuts to save their business – Les Echos, April 28, 2020

Franklin partners Myriam de Gaudusson and Numa Rengot are quoted in an article in Les Echos of April 28.

“[The issue of executive compensation] is not decided by the Commercial Code or the Labor Code, but by the company’s articles and shareholders’ agreement, explains Numa Rengot, the partner in charge of Franklin’s restructuring practice. They either provide that the CEO’s compensation must be reviewed every one or two years, in which case the matter must be put to a vote of the shareholders at the AGM, as is most common where there are investors; or there is no such provision, in which case a vote of the shareholders is not required.”

“[The issue] is worth discussing with the independent auditor or the public accountant, who will find out anyway when they audit the company’s financial statements. It is also worth referring to the labor-management committee,” said Myriam de Gaudusson, a partner with Franklin’s Labor and Employment practice, insisting on the fact that it is a “management action in its own right.”