French Workers Burn Tires, Hold 3M Manager Hostage

Bonus payments are dominating headlines in Sweden, which prides itself on a relatively egalitarian society. Big companies like truck maker Volvo and bank SEB have been forced to withdraw compensation schemes for top executives amid public outrage.

And in Switzerland, top executives at UBS AG, which is benefiting from a $60 billion government bailout, have given up their 2008 bonuses.

Henri Guaino, a top aide to Sarkozy, issued an ultimatum to French employers, saying in a radio interview Wednesday that the government will step in and legislate if France's main employers' federation, Medef, doesn't come up with proposals setting guidelines on executive pay by March 31.

Medef chief Laurence Parisot was expected to respond to Sarkozy shortly.

Executives from government-assisted banks like Societe Generale to Dexia have come under fire over their compensation, as the global crisis has prompted the state to take a bigger role in corporate France.

Thierry Morin, the former head of Valeo, was awarded a €3.2 million ($4.3 million) exit package after citing "strategic differences" and leaving. The government, which owns 8 percent of Valeo, said it will oppose the payment, and even Parisot urged Morin to hand back his check.