France caps pay at state companies at $560,000

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PARIS (AP) — France's finance minister has unveiled a plan to cap the pay of top executives at state-owned companies at €450,000 ($562,140).

The pay cap was part of President Francois Hollande's campaign pledge to reign in corporate excesses, which he blames in part for the financial crisis.

The move affects only a fraction of French executives, but includes such well-known state-run companies as the SNCF railways, La Poste postal service, and EDF electric company.

Finance Minister Pierre Moscovici said at a press conference Wednesday the cap will be instituted across all state-owned companies by the end of the year.

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