News this week that he would receive two salaries - 1.6 million euros ($2.3 million) from EdF and 450,000 euros from Veolia sparked outrage in a country with a long tradition of scepticism towards highly paid business leaders. "I think it's the right decision, I'm pleased he took it and I rang him to tell him so," said Economy Minister Christine Lagarde, who was loudly jeered in parliament this week when she tried to defend Proglio's double salary.
She refused to confirm media speculation that Sarkozy himself had forced the climbdown to avoid a repeat of last year's uproar over plans to place his 23 year-old son Jean as head of the La Defence business district in Paris. With regional elections coming up in March, the row over Proglio's pay threatened serious embarrassment for Sarkozy, who has worked hard to shed the image of a Rolex-wearing friend of the rich which clung to him at the start of his presidency.
With 160,000 staff and 38 million customers world-wide, EdF, which is 85 percent state-owned, is one of France's biggest firms and its high visibility made the pay issue unusually sensitive at a time of economic hardship and rising joblessness.
Speaking on Europe 1 radio, Lagarde said she now wanted to "move forward" but Proglio's decision on his second pay packet did not end questions about his role at Veolia, a water, energy and services provider that competes with EdF in some sectors. A leading figure in the opposition Socialist party, Manuel Valls, called for Proglio to resign from Veolia, attacking what he said was a "conflict of interest". Even on the centre-right there have been muted calls for a change.
"His double Veolia/EdF role is a bit complicated, and Henri Proglio should think about it," said Gerard Longuet, head of the centre-right group in the Senate. Lagarde said she did not know whether Proglio would remain in place at Veolia, the group where he has spent most of his career and where he was chief executive before moving to EdF. There may also be questions about Proglio's pension rights at Veolia, which set aside 13.1 million euros in supplementary pension payments for the former CEO in its 2008 accounts.