# Prof. Xavier Gabaix on French state-owned companies capping pay

1 Faculty News June 1, 2012 ![Reuters logo](/sites/default/files/styles/246w/public/assets/images/con_030503.jpg?itok=0OAgrDF0)>

Excerpt from [Reuters](http://www.reuters.com/article/2012/06/01/france-ceo-pay-idUSL5E8GVEQJ20120601) -- "'It is a very bad idea, purely symbolic,' said [Xavier Gabaix](http://www.stern.nyu.edu/faculty/bio/xavier-gabaix), Professor of Finance at the Stern School of Business Finance in New York. 'There will be departures to the private sector. It will increase cocooning in the public sector.'"

[Read more  ](http://www.reuters.com/article/2012/06/01/france-ceo-pay-idUSL5E8GVEQJ20120601)