Carlos Ghosn September 30, 2016 in Paris. ( AFP / ERIC PIERMONT )
This is what we call hit the “jackpot”. In a statement to the financial markets Authority (AMF), published by the “gendarme of the stock Exchange,” Carlos Ghosn, CEO of Renault indicates that it has acquired the 16 December 132.720 shares of his company at a unit price contract 37,43€. However, the share price of the Renault Paris was Tuesday afternoon 85,34€, that is a greater potential value of 6.36 million euros for the leader car if it sells these securities at this price.
This development, revealed by the economist Benoît Boussemart, and the magazine Capital, has not failed to react.
A PAY SHOCKING
Guest of RTL Wednesday, 28 December, Richard Ferrand, secretary general of power up!, the movement of Emmanuel Macron believes that”it goes without saying that this is still morally shocking to discover that one can win like that, on a maneuver linked to the capital, at the bottom a lot more than a lot of French people earn in a lifetime. It is always the system a bit of a paradox with these things which are clearly legal, and at the same time shocking”
On LCI, the mp PS Karine Berger was upset his side in the role of the Medef in all of this. “The Medef we have cruised on. (…) It’s been four and a half years they tell us that they will self-regulate. In practice, we can see it clearly with all the scandals… (…) It was every six months. (…) Renault has not only been helped by the power of the public but, in particular, has been part of the companies who have led its employees to reduce their vacation days and to reduce their wages for periods ranging from one year to two years. So Mr. Ghosn’s remuneration comes from efforts, wages and working time of its employees, and it is unacceptable,” said this member of support team of the candidate for the primary of the left, Vincent Peillon.
Even the sound of a bell at the side of his opponent François de Rugy. “It is legal but it is very shocking because it is a wage scale utterly fantastic in the Renault group (…) (Mr Ghosn) basically, it can gain close to 1.000 or 2.000 times the Minimum wage in a month, so this is unbearable (…)”, said the environmentalist at the microphone of RMC. “Our majority has said at the beginning of the mandate, and it has been applied, the public enterprises, it is a maximum of € 450,000 per year for the CEO, well I’m to apply the same rule to companies in which there are interests of the State (…) or the Renault group will have to go without the participation of the State”, he added.
“THE CAPITALISM IN OUR WORLD TODAY”
To the left always, Yann Galut, member of the Cher and spokesman Arnaud Montebourg for the primary has also denounced such remuneration. “The € 6 million that Carlos #Ghosn plans to assign as the value is indecent and show the obligation to legislate.. #equity”, he tweeted.
At the center, Yves Jégo, vice-president of the IDU stands in the place of a worker of the Renault at the Smic, but does not condemn. “In the end, if the head of Renault, because it has shares of the company, key earnings because it has well-managed the company with or participated in running the business, it seems to me to be also what is the capitalism in our world today,” he judged on Europe 1.
THE WRATH OF THE SGC
The CGT of Renault has been criticized on Wednesday the CEO Carlos Ghosn as his “cynicism exacerbated” and “remuneration indecent”. In a statement, the union compared that amount to the situation of a “majority of the employees of the Renault group, whose purchasing power keeps dropping the name of a ‘wage moderation necessary’ and which are considered only as ‘cost to reduce’”.
“Carlos Ghosn is here rewarded for the achievement of its objectives contained in the agreement of competitiveness, 2013-2016″ says the CGT denounced the “job cuts” (9.200 departures on these three years for 3,000 new hires a portion of which will be completed in 2017) and the “precariousness” with an increase in the number of temporary workers. According to the union, in addition to this “pay indecent”, the CEO of Renault is proof of “a cynicism exacerbated when (the) justified in declaring ‘that in the world of the automotive industry, the talent, the experience, the uniqueness (that) pays’”.
This is not the first time that his compensation is causing a stir. In April, the shareholders of Renault had rejected general assembly resolution value advisory on the compensation of the CEO for 2015, is 7,251 million euros in total, of which 1,737 million in cash.