Are companies raking in too much profit, to the detriment of insufficiently paid employees? The annual publication of the results of the large companies that make up the CAC 40 inevitably brings back the debate on the sharing of added value. Namely, the distribution between payroll – remuneration of work – and profits – remuneration of capital and shareholders. The return of inflation, which has weighed on purchasing power, makes the question even more acute. Especially since the increase in profits has helped fuel inflation in several sectors, such as the agri-food industry, transport and energy.
The distribution of value created by companies, in the form of products or services, has been rather stable in France since the 1980s. If we remove the portion which is returned to the State in the form of taxes and duties , two thirds (66%) of the wealth produced goes to employees, in the form of remuneration, and a third to profits – these being partly returned to shareholders with dividends, and partly reinvested in the company, according to data published by INSEE.
The share allocated to capital − profit − experienced a small decline after the financial crisis of 2008, falling to less than 30% of value added, before returning to its previous level, with the exception of 2020, year of Covid-19 and confinements. This distribution is more favorable to employees than in the United States, for example, where the share of profits is greater (around 40%), or than among our main neighbors in the euro zone (36% to 40%). .
Shareholders around the world
“It is not true to say that French companies cover their shareholders with moneyannoys Patrick Artus, economist at Natixis. They even make rather good use of their profits: over the recent period, France has benefited from a sharp increase in business investment. » So much for the energy transition or the rebirth of industry. Shareholder remuneration – the sum of dividends paid and share buybacks – represents around 4% of GDP in France, compared to 6% on average in Europe and the United States, specifies Mr. Artus.
However, many French people do not see things the same way as the economist. Attention is focused on the substantial profits made by CAC 40 firms, even if they are not representative of all companies. “ These global companies have their head offices in France and pay part of their taxes there, but the value is produced on a global scale.recalls Olivier Redoulès, economist at Rexecode. The shareholders are also scattered all over the world. » Part of the dividends therefore goes to the rest of the world.
You have 56.08% of this article left to read. The rest is reserved for subscribers.