Carlos Tavares doubles its earnings but remains far behind Carlos Ghosn – Le Figaro

The boss of PSA gained two million less than Renault last year. Carlos Ghosn still dig the gap with additional remuneration as Nissan boss. Meanwhile, grind the unions tooth

The patterns of PSA and Renault have something else in common than their first names. They appear every two club bosses CAC 40 highest paid. But Carlos Tavares, head of PSA, always running behind his counterpart Carlos Ghosn at Renault. His compensation has certainly doubled last year to reach 5.24 million euros but that of Carlos Ghosn has reached 7.25 million euros, according to the reference documents published by PSA and Renault.

in detail, the compensation of the CEO of PSA Peugeot Citroën is composed of a fixed portion of 1,300,000 euros and a variable portion of 1,930,500 euros. Added to this is 130,000 performance shares awarded during the year and recovered to € 2.01 million. But Carlos Tavares will have to be patient to enjoy: the shares, subject to performance conditions are definitively acquired only after a period of two years, says the reference document. Once acquired, they will still be retained for an additional term of two years.

“6 billion euros of free cash flow generated over the two years of the plan”

The Supervisory Board justified these amounts explaining that Carlos Tavares has “fulfilled its 2015 targets for 99%.” The manufacturer’s boss has indeed made a rapid recovery of the Lion brand. The objectives that were set by the plan “Back in the race”, initially set for the period 2014-2018, have all been exceeded. The supervisory board is demonstrated by the “6 billion euros of free cash flow generated over the two years of the plan,” the “almost 5 billion euros net cash” displayed at the end of 2015 and operating margin 5% for the automotive business.

At Renault, Carlos Ghosn also seems to have fulfilled its mission. The manufacturer, which saw its net profit jump 48.1% in 2015 to € 2.96 billion, with states having reached two years ahead of its profitability target. Carlos Ghosn has received a fixed share for fiscal 2015 of 1,230,000 euros and a variable portion of 1,783,500 euros. The CEO, however, has affected 25% of that amount, 445,875 euros, the rest (1,337,625 euros) it is paid in shares deferred manner. It also has 100,000 “performance shares”, valued 4,184,850 euros. To qualify, you must meet certain performance criteria will be assessed over a period of three years. “If the company’s performance is not good, the beneficiary receives no action,” told AFP a spokesman for the group.

In June, the boss of Renault will also learn of his remuneration in his capacity as CEO of the Nissan group. For the 2014/2015 financial year of Nissan, it amounted to 1.035 billion yen, or 8.2 million euros at current prices.

“It is in completely indecent remunerations “

what irritate the unions are still struggling to digest wage restraints imposed in the competitive contract signed in 2013.” We’re in completely indecent remunerations under what Carlos Ghosn and CEOs require employees, since has been no general wage increase again this year, “responded Fabien Strike, representing Renault CGT, told AFP. Unions are especially angry that Carlos Ghosn recently expressed his desire to achieve, this year, a new agreement competitiveness, similar to the one signed in 2013. “Those who explain to others that need they are tightening their belts do not fail to assume extravagant salaries and costing more and more to the company, “says Fabien Strike.

Renault boss compensation must still be submitted to a vote of shareholders at the general meeting on 29 April.