In a country where business has been long run by France’s elite, shareholders have demanded the departure of three CEOs, leaving non-French bosses to takeover, according to The Wall Street Journal.
Alcatel-Lucent, Sanofi-Aventis, and recently Carrefour have appointed new Dutch, German-Canadian, and Swedish CEOs, respectively. This is the first time this many CAC-40 companies are run by non-French bosses.
The latest changes have transitioned French companies into genuinely multinational enterprises. No longer are the French elite expected to lead as shareholders demand executive accountability and stricter board policies.
Foreign investors, who have pushed for corporate reform, have gained strength by teaming up with French allies. In one instance, Colony Capital, a U.S. investment firm, has teamed up with Group Arnault to initiate change at Carrefour and hotel group Accor, according to WSJ.
The new generation of French CEOs are facing challenging executive decisions. Their penchant to work quickly and more efficiently pose a threat to executives at other French companies who are slow to implement necessary cost-cutting changes. The board is more likely to find someone who will be quick to initiate change and will not hesitate to make changes themselves.