lhe French economy is largely built around the myth of the “national champion”, that is, the large company that, thanks to its talent and knowledge, shines internationally and participates in the increase of French prosperity. This myth is powerfully rooted in French culture.
Its origins date back to Colbert (1619-1683), Minister of the Navy and Colonies of Louis XIV, who launched numerous initiatives (such as the Compagnie des Indes) to increase the prosperity of the kingdom of France by setting out to conquer markets located far beyond national borders.
This myth of the national champion is embodied today by companies such as TotalEnergies, Hermès, LVMH, Renault, Schneider Electric, L’Oréal, Sanofi… These great companies, which we find in CAC 40 and SBF 120, are the pride of France, and economic news never misses an opportunity to celebrate this or that success of our national champions on an international scale.
If internationalization and market conquest are well-known characteristics of our national champions, their governance is rarely analyzed and commented on. However, the latter has undergone very significant transformations over the last twenty years, the extent of which we have not yet fully appreciated.
French minority directors
Their study highlights quite worrying trends for the future of our national champions, whose links with the national context are weakening in historically unprecedented proportions (“Towards a great uprooting? Governance and economic footprint of listed French companies », Haithem Nagati, Bertrand Valiorgue and Sébastien Winston, Supporting evidencenotebook n° 7, French Institute of Corporate Governance, EM Lyon).
Since 2017, the capital of large listed French companies is no longer majority owned by French shareholders. In less than twenty years, French participation in large listed companies has fallen from 72% to 34%, which has meant a profound change in the sociology of shareholders, their expectations and their behavior. The profiles of managers and administrators are also in a process of advanced internationalization.
In 2023, 82% of managers were of French nationality, compared to 90% in 2015. At the level of directors, there were 92% French in 2015, compared to 74% in 2023. If this dynamic were to continue, it is likely that Before 2035, French directors will be a minority on boards of directors.
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