Wednesday, December 28, 2016

The premieres of Carlos Ghosn are bouncing the controversy over his salary – Release

The CEO of Renault Carlos Ghosn is likely to reignite the debate on the compensation of the big bosses of the CAC 40. After the takeover of the japanese manufacturer Mitsubishi, the 14 December, that is that the man of 15 million euros per year (the title of his double salary as boss of the Renault-Nissan alliance) redoes to speak about him to his emoluments outside the norm. This week, the economist Benoît Boussemart, revealed the latest plan of stock-options which had been granted by the board of directors of the constructor.

On December 16, Carlos Ghosn has risen 132 720 shares of Renault, for which he received an option to purchase four years earlier. At the time the securities had been offered to 37,43€, which corresponds to the share price at the end of the year 2012. Four years later, she is 85 euros. If it sells today, its securities, Carlos Ghosn will realize a gain of 6.3 million euros… “to this day, he has not re-sold”, is quick to clarify the direction of the company. In any event, the allocation of stock-options are not done on the sly. the “we shouldn’t forget that this is the general meetings of shareholders, which can allocate the stock options, or the day where the value falls on these actions, many say that it should not”, said Colette Neuville, president of the association of minority shareholders (ADAM).


The remuneration of the CEO of the renault brand, however, remains a sensitive topic. At the end of April, the annual salary of 7.2 million under the president of Renault, in addition to $ 8 million for Nissan, had elicited an avalanche of criticism. The State shareholder to the tune of 20% of the automobile manufacturer then expresses publicly his opposition. In the wake of this, the general meeting of shareholders of Renault voting even 54,12 % against this amount. At the time, however, it is still a ballot advisory. And the board of directors of Renault was sitting on the veto of the shareholders, in return for a small concession: 20% less on the variable part of the salary of Ghosn.

Since then, gun-shy by this case, the parliament has passed legislation at the request of the government. The Sapin law now makes binding the vote of the shareholders. In the clear, these can block elements, during the general assembly, the salary of a CEO, as it was unilaterally decided by the board of directors. But we don’t may not be finished with the controversy around the pay slip of Carlos Ghosn. Paid by Renault and Nissan, the boss caps multiple is also officially become CEO of Mitsubishi on the 14th of December; he could claim to be a third wage to the title ! What is the amount ? the “In our executive compensation is a topic that we discuss either in public or in private”, reacts modestly, a representative of the management of Mitsubishi France, as requested by Liberation. Not to mention a possible triple wages, the CGT of Renault has been criticized on Wednesday the CEO Carlos Ghosn as its “cynicism exacerbated” a nd “pay indecent”.

Colette Neuville, she, is concerned about a possible overuse of Carlos Ghosn: “If he dedicates himself full-time to the Renault, Nissan and Mitsubishi, it will have to do the 3 x 8″, pleasant to the representative of the minority shareholders.

Franck Bouaziz


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