This article analyses the impact of employee shareholding and participation in governance bodies on the performance and cash distribution policy of French companies. This empirical work is based on data from a combination of three sources (IODS, Eikon and Thomson Reuters) for a sample of listed companies in France over the period 2000-2014. Our results indicate that employee participation in corporate governance has various effects: employee shareholding makes it possible to increase the profitability of companies but it also allows for the curbing of their dividend payment and share buyback practices. At the same time, employee participation in the board of directors (or supervisory board) moderates the payment of dividends to shareholders. These results form part of the discussion on the renewal of corporate governance and the development of cash distribution policy.