Renault’s CEO pay check sparks controversy within company image

Carlos Ghosn’s compensation for 2015 is a highly debated subject at Renault these days, as a majority of shareholders voted against the CEO’s pay package.

During Renault’s annual general meeting of investors, 54 percent of investors spoken against a decision to pay to chief executive Carlos Ghosn a 7.2-million-euro (8.3-million-dollar) pay package accordingly to automaker’s 2015 financial results. However, despite this negative vote, Renault stuck by its commitment to granted Ghosn 1.23 million euros in fixed salary, 1.78 million in variable pay and 4.18 million in deferred bonuses and stock, in addition to the 8 million euros he received as CEO of the alliance partner Nissan. “The Board once again acknowledges the quality of the 2015 results, with revenue over €45 billion, an increase of 10.4%, and an operating margin of 5.1%, a two-year head start on the Renault 2016 Drive the Change plan’s objectives,” the company said in a statement, adding though that the remunerations committee was asked to review pay structures for 2016 and beyond.

The French government, which has more than 18 percent of voting rights in Renault, or about a quarter of votes cast at the meeting, has also strongly opposed to the package endorsement, as executive pay levels have lately been attracting some strong scrutiny within the country. “What we are very clearly demanding is that Mr Ghosn live up to his responsibilities with regard to his compensation for 2016,” Economy Minister Emmanuel Macron said. The government will seek a further Renault board meeting to “draw the necessary conclusions”, he added. “Failing which we would be compelled to legislate.”

Via Reuters