c3- 14.11.17, compensation12, CDC, deputy Legendre, Lombard, remuneration, market, public, private

 Book: “Les deux formes”, Amazon

Paris, Tuesday, November 14, 2017


 Copy : 
President of the Republic 
Prime Minister 
Minister of Economy and Finance / Director General of the TreasuryPresidents of Parliament / Chairmen of Parliamentary GroupsEuropean Union / OECDDeposit and Deposit Office: 
Director General / Elect of the Supervisory Commission 


THE WITHDRAWAL OF PUBLIC LEADERS 

1) - The facts

 An article in the Enchainé Duck, Wednesday, November 8, p.2, "The not-so-ideal son-in-law," reports the difficulties of appointing a new Director General (DG) to the Caisse des Dépôts et Consignations (CDC). 

The CDC is the financial base of France. If it is ruined or dismantled, the French Republic, like Greece recently, can no longer afford to exist. 

Eric Lombard, former CEO of Generali France, is expected to be appointed. 

It appears that the Chairman of the Supervisory Commission, the deputy Le Gendre, has headed the consultancy firm Explora et Cie, partner for ten years of Generali France. 

The High Authority for Transparency in Public Life, the HATVP, has to say if there is a "conflict of interest". She will decide and advise.But this decision will not answer the question of multiple refusals by the government in its quest for a new CEO of the CDC. 

3) - Withdrawal and novelty 

This withdrawal of the Public Executive Officers is not an incident of course. 

We are talking here about the cadres whose list is established in particular by the Decree n ° 53-707 of August 9, 1953 modified. 

If it is a CEO, executive of the Private, who has volunteered, it is also that public executives solicited declined the offer. 

Let's say some have rejected it for political line disagreements as evoked by the unions. There is room for news from the newspaper that:

 a- "Who would have believed it? We do not jostle at the gate to replace Pierre-René Lemas, the boss of the Caisse des Dépôts, 

b- "What did not anticipate the Elysee is that the post is not madly enticing for a finance inspector.

 c- "And then capped at 450,000 euros since a decree of 16 January 2013, this promised salary to the future DG, pretty for the public, has rejected a number of candidates.

 d- "... who preferred to go slapping for a lot more in the private. " 

The background noise of the French public debate inscribes this withdrawal in a diffusion of the financial greed, the hypertrophy of the greed. 

Five years ago, the Minister of the Civil Service considered it abnormal that a senior executive earns more than a "Minister" and the government's orientation was that of moderating high wages because of the immorality of the differences. of income that they led. 

She spoke thus in good faith because she was thinking in a logic of national and closed remuneration; without links to so-called "foreign" networks of executives.

 However, by the retention of their applications; the senior executives point out that from now on, their salaries are decided according to criteria that are no longer national but global. 

This withdrawal of applications can be considered as a movement of claiming professionals who believe that their remuneration is no longer adapted to the benchmark salary of senior executives. 

These global criteria integrate, in multiple forms, the combination of executive compensation and capital. 

4) - DisordersState denials on this subject lead to remarkable disturbances in the functioning of the civil service. 

These are analyzed in a purely moral way as the expression of the consequences of the transgressions of the normal rules of operation of the public directorates. 

1- Lepidism 

Example: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 who tells you that it may not be very clever to go against the desires of the banking sector ... just in case. " 

Regardless of the hazards of the choices of each; currently, nothing can tell us if this leprosy comes from a decomposition of the capacities of honesty of the senior executives of the Public or if it is the result of the inadequacy to the globalization of the logic of national and closed remuneration of the public administrations then that their operations are there and already included. 

Globalization implies that administrative executives negotiate transformations of their administrations by placing themselves outside the sovereign representation of their state. 

They are no longer in diplomatic relations with their interlocutors, but in the personal relations of commercial negotiators. 

The criteria for valuing their authority by what the OECD calls "universes" are no longer the same.If today, the leaders of the "Treasury" want a "better paid career", where their elders were satisfied with the satisfaction of their Powers, it is not necessarily because they became venal. 

It may also be because they are aware that the pecuniary value of the profession, its exercise, the recognition of their value and therefore ultimately of their personal authority, go through a "better remuneration". 

This valuation is no longer defined by their only entries in local salary hierarchies.It is also defined, or even primarily, by what might be called the Global Executive Income Market. 

Leprinism is therefore not comparable to the permanent demand for corruption. It is the first signal of a statutory dysfunction that needs to be examined. 

2- The "revolving doors" 

Another category of disruption due to this mismatch in the calculation of executive revenues to globalization is the disruption of the functioning of public authorities, or "political systems", and private "financial markets" or "universes", by the sole "Regular staff turnover between the two worlds", the public and the private. 

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.  

"The OECD has identified the nuisance this confusion causes for the reliability of both the public and the private sector. 

The stability of senior management networks within the "two worlds" has become a key element of "citizen trust" in them. 

a- It will no longer be possible to ensure this stability by identifying the public with the monastic sacrifice and the private with the spoiling saraband. 

b- On the other hand, the foundation of each other's remunerations on the registration of these in the capital has become a reference. 

c- This registration is of course distinct in the private and the public where it does not contradict the salary control. 

5) - Conclusion
 
It is a sterile illusion to pretend to return to a past whose codes we no longer have.

Rather than looking to decompose the higher administration faced with globalization; it is possible to experiment with innovative modes of remuneration that offer public executives the opportunity to develop sustainable public sector networks as part of globalization.

In the eyes of the OECD, this is what is crucial.

Marc SALOMONE