Saturday, November 19, 2016

Renault : towards a new controversy over the compensation of top executives – Journal of Economics

The annual meeting of shareholders of Renault will indeed be held at the end of April, between the two rounds of the presidential election. Last year, the vote of the shareholders for the remuneration of the CEO Carlos Ghosn had turned to the rat race between the direction of the automaker and the State, main shareholder of the group.

The government had in fact raised their veto at the annual salary of Carlos Ghosn, or € 7.2 million. In passing, the board of directors of Renault has pushed the government to vote on a new law of modernization of the economic life which gives more powers to the shareholders. They will be able to reject the compensation of the officers, a decision that will have to comply with the board of directors.

But the act does come into full effect in 2018 ; for the next year, shareholders will reject the formula, but not the amount. Carlos Ghosn is starting to prepare the ground : in an interview with Reuters, he explained that the compensation of top executives responding to a ” business logic related to the global competition “. He is also CEO of Nissan and Mitsubishi may well lead to new controversy.


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