Source: Associate Press

France’s new Socialist government says it opposes a €400,000 ($500,920) payout for Air France-KLM’s former CEO, part of its push to rein executive salaries at state-owned companies.

In a statement issued late Tuesday, Finance Minister Pierre Moscovici said the state’s representative would abstain from a vote at a Thursday shareholder’s meeting to approve the payout. The government has a 15.9 percent stake in loss-making Franco-Dutch carrier.

Reducing executive pay was one of President Francois Hollande’s signature campaign promises. He has vowed to mandate that the highest salary in state-owned companies is not more than 20 times the lowest salary. His prime minister told a French news magazine this week that the measure would even be applied to the salaries of executives already in their posts.