Dividends, salaries, bonuses… how the profits of big companies will be distributed

The cumulative net profit of some of the largest French companies in the CAC 40 exceeds 120 billion euros for 2023.

Another prosperous year for CAC 40 companies. The profits of the largest groups are set to once again exceed 120 billion euros in 2023. 25 of the 40 companies published their annual results: between them they generated exactly 123.9 billion euros.

Figures that are driven by two sectors: luxury and automobiles. Hermès, LVMH, Kering and L’Oreal alone made a profit of 29 billion euros, an increase of 7%. Transportation – especially automobiles – also saw its profits rise. More than two billion euros for Renault, 18.6 billion for Stallantis which sets a new record and is second behind TotalEnergies.

Unprecedented amount for dividend

Luxury, energy, transport also increased by 14% compared to banking sector 2022. We also expect results from EDF, then Engie Group or Carrefour in general, in the coming days. This money will be redistributed later. First for shareholders: in 2023, the CAC 40 dividend reaches 67 billion euros, an unprecedented amount. In addition to about 30 billion euros in share buybacks. In total, about 100 billion euros profit.

And then there are employees who benefit from value sharing. The group’s boss, Carlos Tavares, announced on Franceinfo on Thursday 15 February that 1.9 billion euros would be redistributed to employees worldwide. In France, they will also receive an incentive bonus of 4,100 euros. However, this is slightly less than in 2023, when the bonus was 4,300 euros with less good results. Alas for the first union of the CFE-CGC group. The Stallantis automotive group announced a new record profit of 18.6 billion euros for 2023, up 11% year-on-year.

“This economic performance must be transformed into social performance and must also be accompanied by value sharing.”

Laurent Ochel, Central Representative of CFE-CGC

at franceinfo

Joe greeted the first union representative in the group “Extraordinary Results”Warns on it “Equitable Sharing of Value”. CFE-CGC regrets that the management does not provide additional efforts through supplements to increase it to 4,500 euros. “The group could have done better”He emphasized that the employees would have likedé “That this extraordinary complement of 4 is a bit too high to get this bar 500 euros”. In other groups, things sometimes go less well. This is what happened at the end of 2023 at BNP Paribas, which unilaterally established a bonus package below 2022 when there was no agreement between management and unions during mandatory annual negotiations.

CAC 40 boss salaries are on the rise

We are waiting to know the general figures for 2023, but we already know that Luca di Meo, who will celebrate one year as head of Renault in the spring, should receive around 4.5 million euros for the 2022 results. And that’s far behind. Carlos Tavares’ remuneration as the boss of Stellantis can earn up to 23.5 million euros. The group’s shareholders gave the go-ahead to the amount last year.

Regarding the general remuneration of CAC 40 bosses, according to a recent report by the firm Proxinvest, in 2022 they grew twice as fast as their employees, although they were less significant.