Abstract. We show that an 'almost strong Lefschetz' property holds for the barycentric subdivision of a shellable complex. From this we conclude that for the barycentric subdivision of a Cohen-Macaulay complex, the h-vector is unimodal, peaks in its middle degree (one of them if the dimension of the complex is even), and that its g-vector is an M -sequence. In particular, the (combinatorial) g-conjecture is verified for barycentric subdivisions of homology spheres. In addition, using the above algebraic result, we derive new inequalities on a refinement of the Eulerian statistics on permutations, where permutations are grouped by the number of descents and the image of 1.