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Paris, Tuesday, November 7, 2017
Subject: The French and the money of their administrative executives
Copy :
President of the Republic
Prime Minister
Minister of Economy and Finance
Director General of the Treasury
Presidents of Parliament
Chairmen of the parliamentary groups
European Union
Deposit and Deposit Office:
General manager
Elected Supervisory Commission
OECD
Your ref. 31.10.17
" Dear Sir,
I thank you for your mail, which interested me deeply.
The
candidates for the Caisse des Dépôts general management, more numerous
than they say, are fortunately not only guided by the salary attached to
the function.
Yours truly.
Gilles Le Gendre / Deputy of Paris »
Chairman of the Supervisory Board of Caisse des Dépôts
Parliamentary Assistant: / Théo Dardonville
+33 6 45 56 30 29 / theo.dardonville@clb-an.fr
The Deputy Gendre
Chairman of the Supervisory Board of Caisse des Dépôts
I thank you for your comment on my reflection of October 30 on "The vacancy of public executive positions". cf. below.
I know from experience that you were not forced to do it; having regard to my social condition.
1. Preamble
You
write: "The candidates for the Caisse des Dépôts general management,
more numerous than they say, are fortunately not only guided by the
salary attached to the function. "
By these words, you recall very appropriately the attachment of the
French executives to the Public Service and their acceptance of the
obligations of modesty that it imposes.
Without this personal quality, which is common to them, there would be no public administration or state.
I therefore completely share the idea that the remuneration of the
position is not the only criterion on which the applicants for this
appointment are based.
You have also been called, as Chairman of the Supervisory Commission,
by the SNUP (National Unitary Union of Staff of the Caisse des Depots),
by another perspective of questioning about this appointment.
SNUP "fears" that this "lack of appointment" will prepare "the
publication of an ordinance or a bill to modify the public status of the
CDC and ratify its dismantling".
The CDC's CGT had also recently alerted parliamentarians to the same effect.
It
would, however, be obscurantist to oppose the diversity of concerns
about the vacancy of the CDC's Director General's headquarters; both those expressed by various unions and those reported by Le Canard Enchainé.
2) - The PRPT
The Enchainé Duck is indeed not the only medium to report this reality
that is the hypertrophy of the Pantouflages, Retropantouflages and
"Revolving Doors" (the PRPT).
a- This journal establishes the generalization of this practice, cf. the
31.05.17: "... Practice once reserved for senior officials anxious to
improve their ends of the month in the middle or end of career, the
revolving door became widespread and the risk of conflicts of interest
have never been so numerous . "
.b- The OECD makes "Revolving Doors" (PT) a functional category.What bases my point is that this evolution, at first shocking, is not
precisely the fact of the only diffusion of the lure of the gain.
It is also, and perhaps first of all, the way of senior executives to
challenge en masse the public authorities on the renewal of the issue of
their remuneration.
François Denord, sociologist © Radio France / B. Collombat"75% of finance inspectors will slap during their career, including a good third permanently or permanently. "
Unlike commentators' goods; I do not think that the concerns of these populations are unjustified, inappropriate or incongruous.
We are talking here about the cadres whose list is established by Decree No. 53-707 of August 9, 1953, as amended.
3) - InactionThe relevance of this question is recognized by the representatives of the public authorities. It is treated so far under the usual mask of "premiums".
The MP René Dosière thus exposes the official point of view: "The principle of these bonuses is not shocking. But the salaries are high: this raises the problem of compensation in the senior civil service. An issue that deserves a discussion ".
In doing so, it gives the final word of the thought of French
political cadres on this issue, the guideline: to undergo evolution and
postpone its discussion to an indeterminate date.
The question of remuneration of senior executives is raised by the public concerned. The public authorities manage it by denial and postpone the answer sine die.
4) - The cousins of the unspeakable
In the land of the writer Albert Camus who said "badly naming things adds to the misery of the world"; it is as if the public authorities had the greatest difficulty in agreeing to only name things.
Without making a peremptory identification; the detour by a brief comparison with an object of study that has
nothing to do with public finance can shed light on this moral inability
to name things.
So, about the "turnarounds" of Jihad; fighters returning to France:
a-
The public authorities are unable to establish publicly that these
warriors, for whom a place of combat is a moment of a military career of
which France is a stage, must be answerable to the justice of the
countries where they are constituted warriors before going to the French courts.
b- Only local magistrates are able to establish and judge faults.
c- It is still necessary to recognize them as magistrates.
d- The solidarity of the justices then prevails on the national
protection with regard to the nationals and the French justice must
deliver these combatants to his homologues thus qualified.
e-
Instead, to avoid naming things, the French authorities go so far as to
legally go wrong by replacing the law with post-war combat, the
"neutralization", which is illegal.
d- Not being able to name the things, the French authorities lose the
control of their course and cause their embarrassments, even their civil
defeats to come.
There is an ideological cousin between this inability to name facts
about war and the inability to name the facts organizing the
remuneration of the senior executives of the Public Service.
5) - The logic and the operation
In order to understand the question posed by the senior executives of
the public service with regard to remuneration, it is first necessary to
identify the operation and the logic of these.
Then we will see the changes that Globalization imposes.A- OperationThe question of remuneration concerns two categories of payments:1- Controlled remunerationsa- The public payment95% of officials who earn between 1350 euros and 3800 euros gross.5% earn from 3800th to 8000th.2-
Uncontrolled remunerationThis official salary grid does not take into account "bonuses".
a- For ordinary salaries, including executives, these "bonuses" are controlled by public accounting.
b- For a certain number of high officials, these "premiums" are secret,
c- We call them "premiums".c- These employees are said to be "a hundred or so".
3- The function of "bonuses"
a- It is clearly explained in the press that these surcharges serve as
forms of "compensation" in relation to gross wages necessarily lower
than those to which the same people could claim when choosing to work in
a large private sector company.
b- In the "private" sector, the managers concerned can earn up to ten times more.
4- The camouflage
a- We are there in the ordinary camouflage of an expense in an accountancy.
b- The fact of the existence of an executive salary discussion is
recognized, publicly taken into account by the "premiums", but
politically denied.
B- The logicFrench politicians think of the effects of globalization on the
remuneration of executives as a new source of disorganization which must
be opposed by strengthening the age-old logic of the proper functioning
of the administration.
It is characteristic that in parliamentary debates this question is subordinated to morality and not to strategy.
It is the primacy of moral standards that underpins the public solidarity of all civil servants.
So :The state, the public service, is served by vocation, devotion, self-denial, sacrifice, priesthood, honesty, and so on.
The vocation is the capacity to manipulate fortunes, those of the State in the first place, counting its ends of the month.The modesty of public servants' salaries is a vital element of the public imagination.
In all debates on the salaries of civil servants the emphasis is on the necessary moderation of high salaries.
For example, the question asked by the press is whether the Ayrault government has paid less premiums than that of Fillon.
a- It is said that amounts of 35,000 to 80,000 euros "make you dizzy".
b- The press reassures us by concluding: "If these amounts are high
and can make you dizzy, they are still lower than in previous years"
c-
Thus "Le Monde explains that the total amount of endowments for the
firm's premiums amounted to 31.6 million euros in 2010, to reach 28.4
million in 2011 and 25.8 million in 2012. "
d- Whew, we were hot.
This moderation is paralleled by the general wage moderation, which is marked by the freezing of civil servants' salaries.
In one case, the revenues are really blocked. In the other, disparities increase with uncontrolled premiums.
But
above all, this political verb based on morality does not make it
possible to account for extra-budgetary income formed by the PRPTs. They are now full-fledged income of the ruling civil service.
6) - Globalization
Globalization is not an extension of France in the world. It is the confrontation of the references of the authority of the world's leading cadres. She changed all the technical devices of remuneration.
Paul Lagneau-Ymonet, sociologist © Radio France / B.Collombat"The balance of power between the economic order and the political order has shifted in favor of the economic order.
At
the individual level, the career opportunities offered to former senior
civil servants in the private sector are incomparable. In
the past, you could decide to serve the state because you wanted to
have power, then you went into the private because you wanted the money.
Today, you can have the butter and the pudding, in a very short time. "
The novelty is that the measures of administrative unity put in place
for centuries in the construction of modern nation-states (limitation
and modesty of income, inclusion in the modest wage chain) no longer
function as a single and sovereign criterion.
Globalization requires acknowledging that there is no causal link
between ordinary wage income, including that of executives, and the
remuneration of the Director-General.
The salary grid can organize a hierarchical solidarity with the administrative body. It can no longer fix the income of these executives.
The latter do not recognize any more in relation to the subordinate wage categories. They compare themselves to their global alter egos.
7) - The history
1-
The senior executives subordinated to salary scales and increased
salaries were in line with the exercise of the responsibilities of the
closed, national, controlled and controlled societies of their systems; entrances and exits of their operations, with borders establishing a sovereignty.
2-
Today, senior managers must organize the internationalization of their
administrations, as well by letting foreign networks act on their
national professional territory, as by leading their administrations to
take their own shares of activities in the territories. administrative bodies of other nations.
They can no longer subordinate themselves to the criteria of distinction of their national administrations.
They are attached to the nation no longer primarily by a legal and regulatory submission but first by a strategic projection.
They no longer turn to the leaders of other countries as diplomats but as partners.
The
validation of their authority therefore depends first of all on the
recognition criteria common to the global networks of senior managers
with whom they work.
8) - The money
The main criterion that has prevailed in recent years and for a time is money.What is called "money" in the question of personal abilities of executives is personal money, compensation.
With globalization, the ratio of executive authority to personal money has changed.In short, it is clear that money, personal income, remunerations, have
become a place of establishment of this authority where it is actually
exercised in the world.
The money collected for personal remunerations is the professional authority of senior managers within their world.
The perpetuation of the School of Public Service raises questions about these new situations.
We must master this new relationship to personal wealth to defend the public service.
9) - Denial
By its perverse effects, the primacy of morality in the examination of
executive compensation issues organizes a counterproductive denial.
1- Personal disqualification
By
forbidding the "big hundred" of "public" executives "who earn more than
the minister" to compete publicly with their "private" alter egos, the
moralists disqualify them where personal money is the essential unit of
measure. .
When
the leaders of a public industrial administration discuss competitively
with private industry in Asia, for example, they are no longer covered
by the prestige of the state since they are "commercial". They are confronted with the supremacy of the values of capital.
We do not solve all modes of confrontation by psychology.
2- The subordination
a- Either the public executive complies with the requirements, say or
implied, of the "private" and becomes an ad hoc globalized framework.
b- Either, it remains in the lines of the public service and it is
insensibly cut off from this cultural and financial world of the
networks of frames to which it does not have access.Public executives are condemned to accept a public underestimation of themselves or to accept the guardianship of the Private.
3- The invisible
Christophe Nijdam, former banker and former secretary general of the
NGO Finance Watch summarizes the work of undermining the Public Service
by the PRPT:
"When you're in the treasury, you know that if you want to have a better paying career, you'll do it in the banking sector. You
always have a little goblin in the back of your brain that tells you
that it may not be very smart to go against the desires of the banking
sector ... just in case. "
4- The evil
Starting
from a laudable intention, from the appearance of an indisputable moral
evidence, from a secular cultural habit, the retreat to ancestral
principles adapted to sovereign states before globalization now leaves
the public authorities powerless in the face of the development of questionable collusion, dishonest practices and sometimes criminal drifts.
This substitution of morality for the objective analysis of the
evolutions gives the primacy to the travelers on the sedentary ones.
It runs the risk, spotted publicly, the first to be the mouthpiece of
Private and the latter to be the turkeys of a farce they can not
influence.
In both cases, the public administration is uncertain in its missions and weakened in its capabilities.
10) - The globalized report
An
OECD confidential report dated 2009, makes the same observation in
Australia, Belgium, Canada, Ireland, New Zealand, and the United
Kingdom. Here again, the OECD is concerned about the consequences of revolving doors and "revolving doors" on regulatory authorities.
From the 2009 OECD report:
"The
close relationship between regulators and political power on the one
hand, and the finance industry and its lobbyists on the other, is fueled
by regular staff turnover between these two worlds. (...)
Tackling the revolving doors is the beginning of an indispensable
process to restore citizens' trust in the political system and the
functioning of the financial markets. "
No
one doubts honesty, loyalty and moral disinterestedness, officials from
Australia, Belgium, Canada, Ireland, New Zealand, or the United
Kingdom. The success of these countries bears witness to this.
Without these qualities of administrative staff no modern state would have emerged.
And
yet the OECD cites the PRPTs, the "revolving doors", as an enemy of
"the confidence of citizens in the political system and the functioning
of the financial markets". This enemy would be so powerful that it would be necessary to "restore" that trust.
French denial is therefore not tenable.
One of the interests of this report is to establish that our company needs senior executives dedicated to the Public Service.
These frames must be according to a word of the General "Sure of themselves and domineering". The politics of denial hurts them in these two qualities.
11) - An answer
The OECD recalls the urgency of the independence of the public service with regard to private economic powers.
This imperative requires the developed countries to have new leaders
whose personal trajectory is not subordinated to these particular
interests, however legitimate they may be.
This discipline only expressly concerns senior executives who ensure the permanence of institutions.Indeed, the efficiency of public administrations does not lie in a
doctrine of purity but in the strength of a strategic direction.
This moral independence of the decision-makers requires a remuneration
to the height of the requirements of the globalization without
subordinating them to the private actors of this one.
It is possible to implement this remuneration, which the OECD
describes as an "indispensable process", without weighing down the
budget or undermining the salary grid that ensures hierarchical
administrative unity.
For this, we must abandon the chimeras of denial,
This is what I propose experimentation to accompany the legislative work.
Thanking you for your attention,
Accept, Sir, the President of the Supervisory Commission of Caisse des Dépôts, the assurances of my highest regards,
Marc SALOMONE
Paris, Monday, October 30, 2017
Subject: The vacancy of public executive positions
Copy :Prime MinisterMinister of Economy and Finance Director General of the TreasuryDeposit and Deposit Office:
General manager
Elected Supervisory Commission
Presidents of Parliament
Chairmen of the parliamentary groupsMr. President of the Republic,
Le Canard Enchainé of Wednesday, October 25, 2017, p.1 publishes a ticket "Nobody wants the Caisse".
It
reports that President Macron wanted to precipitate the resignation of
the Director General of the Caisse des Depots et Consignation,
Pierre-Rene Lemas. This one could stay until 2019.
The problem is that people approached to succeed him are stealing.
It follows that Mr. Lemas is responsible for ensuring an interim that could last a certain time.
The state is no longer able to fill one of the most prestigious positions it can offer.
The only reason is that the remuneration of the Director General of
the Deposit and Consignment Fund is no longer suitable for executives
likely to compete for this position.
It is in fact the revenues of the leading administrative functions of
the State that no longer correspond to those of the same-level
executives in the globalized circuit that is today the professional
reference.
The prestige of these functions with the public and the State staff is
no longer enough to erase their financial disqualification and
therefore in fine morals from their global Alter Egos.
Within the state, globalization has brought private sector incomes in
competition with those of the public sector in defining the rank of
importance and consideration attached to a leading role.
Hence the departures in the private sector (pantouflage), the
public-private round-trips (retropantouflage) and finally this evasion
that can no longer be masked.
The revenues of the French executives are fixed by two decrees.
1- Decree No. 2013-56 of 16 January 2013 on the remuneration of the Director General of the Caisse des Dépôts et Consignations
"A
legal basis is given for the determination by the Minister for the
Economy and the Minister responsible for the budget of the fixed,
variable and exceptional elements of the remuneration of the Director
General of the Caisse des Dépôts et Consignations, in compliance with
the ceiling by
the decree n ° 53-707 of August 9, 1953 modified relative to the
control of the State on the national public companies and certain
organizations having an object of economic or social order. "
2- Decree No. 53-707 of August 9, 1953 amended. It fixes:
a- The list of executives concerned:"The
elements of activity compensation for the chairmen of the board of
directors, the managing directors, the deputy managing directors, the
chief executive officers, the chairmen and members of the board of
directors, the chairmen of the supervisory board, the chairmen, the
managers and, in general, persons who, whatever their title, perform equivalent functions "
b- The ceiling to respect:"The
decisions of the ministers taken pursuant to I concerning the sums paid
to the persons mentioned in 2 ° of I under 1 ° and 2 ° of I shall not
lead to the fixing or approval of remuneration exceeding a gross ceiling
of 450,000 euros. . This ceiling can be modified by decree. "
It is this "ceiling" that the executives cited cited find irrevocably unsuited to the current authority of their offices.
It would be incomprehensible that their opinions regarding the fixing of the level of their remuneration should be disregarded.
The exceptionality of income based on the exceptionality of the
functions is an ordinary element of the legal discussion of these
remunerations.
By commercializing the exercise of the authority of public executives,
the solution of "profit-sharing" that spontaneously comes to the minds
of analysts does not take into account the specificity of the public
service.
On the other hand, solutions respectful of the State Service, the
Public Service, wage discussions adapted to these functions, exist.
They would make it possible to combine the respect of the salary norms
of the civil service and the legitimate demand of the executives to
bring their remunerations to the same height as those of their global
colleagues.
This caustic article of the satirical newspaper shows without a doubt
that the official reflections in progress are not able to find a
solution to this major question of the functioning of the State that is
the acceptance of their appointment by the prospective executives.
For the devices in place and the reflections that build them, it's a failure.
It is therefore both plausible to pay attention to a reflection
parallel to these and useful to experiment with devices that could
create a success.
Thanking you for your attention and waiting to read you,
Please accept, Mr President of the Republic, the assurance of my best regards,
Marc SALOMONE
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