PSA Peugeot Citroen Might Reduce Executive Pension Packages image

According to a report published by Les Echos newspaper, French automaker PSA Peugeot Citroen might reduce the pension packages for its executives.

Several months ago PSA Peugeot Citroen chief executive Philippe Varin was forced to turn down his pension and now the automaker might cut the pension packages to the rest of its executives.

According to the report the French automaker’s supervisory board  has agreed upon a new methodology which implies cutting the amount for the company’s executive pension packages from 70 million euro in 2012 to 16 million euro in 2013. A spokesman for Peugeot confirmed that the company has changed the rules for the pension packages but did not give further information.

“We will be publishing proposals to be put to shareholders for the implementation of a new methodology for pension packages,” said the Peugeot spokesman.

Peugeot is already raising around 3 billion euro from the rescue agreement with the French government and Chinese automaker Dongfeng and the new CEO, Carlos Tavares, has already implemented a strategy which will help the automaker reach savings of 1.5 million euro.

In November last year, former Peugeot CEO Philippe Varin said he would give up on his pension package of 21 million euro, a number which sparkled a public backlash in France.