The Renault General Assembly rejected Friday the remuneration of Carlos Ghosn! A first in France. The shareholders voted in effect only 45.88% in favor of the resolution number 8 on the remuneration of the CEO of the firm tricolor. Both state representatives voted against, logically. A rejection acquired while the state has, on this issue, as single voting rights and no double voting rights! Last year, earnings had been ratified by 58% of voters. “The Board takes note of this negative opinion of shareholders,” immediately said President Patrick Thomas remuneration committee just after the vote. Late in the afternoon on Friday, the Board of Directors met and … “approved the continuation of the agreed remuneration” , choosing to ignore the hostile vote.
symbolic rejection
Of course, rejection is symbolic. The vote of the meeting on this is in effect advisory. It prevents. Under 2015, the CEO of Renault, aged 62, is entitled to 7.25 million, including 1.74 million in cash – virtually unchanged from 2014. Carlos Ghosn, who is also the boss of Nissan, should also receive an equivalent amount from the Japanese manufacturer – 8.2 million for fiscal year 2014-2015. Either a higher total than 30% emoluments Dieter Zetsche (Daimler) and triple that of Matthias Müller, the new Volkswagen boss.
According to the documents published by the group before its annual general meeting, the fixed part of Renault’s CEO compensation for the year 2015 amounted to 1.23 million euros and has not changed since 2011. the variable rises, it at 145% of fixed or EUR 1.78 million (against 1.81 million for 2014). Carlos Ghosn, however immediately gets 25% of this variable, ie 445,875 euros. The balance (75%) are converted into shares to be acquired in 2020.
“Performance Shares”
In addition to this, the CEO right to “performance shares”, valued at EUR 4.18 million for 2015. alternate since 2013 stock options, they correspond to a theoretical envelope of shares that the actual amount is determined after three years, depending performance criteria. “If the company’s performance is not good, the beneficiary receives no action”, said a spokesman for the group. The CEO of Renault also received 48,000 euros Renault administrator and 5,440 euros in benefits in kind. There is one year, the sharp rise (+ 170%) of the remuneration of Carlos Ghosn in 2014 had created a huge controversy.
Last Wednesday, the General Assembly of PSA was ratified in contrast to 76 5% compensation Carlos Tavares, former right hand of President Carlos Ghosn and PSA for two years . Carlos Tavares earned EUR 5.24 million in respect of 2015, against 2.75 million the previous year. It does however affect only 3.2 million immediately. The remaining two million, Carlos Tavares will receive that in exercising its “performance shares”. And not before 2019. The announcement late March a doubling of the compensation Carlos Tavares had prompted Michel Sapin climbing personally niche. The finance minister had then described as “damaging” the sharp rise in emoluments of the president of PSA, emphasizing that the state, which owns 14% of the manufacturer, voted against.
Grogne of french State
the french government has repeatedly prevailed against deemed excessive salaries of bosses of several major groups of which he is a shareholder, including Safran, Thales, PSA and Renault. In the first months of his term, Hollande had passed a decree to limit to 450,000 euros gross pay of the bosses, but it was only for public interest entities owned more than 50% by the state, such EDF – which Jean-Bernard Lévy is the CEO – or Aéroports de Paris (Paris Airport company renamed recently), led by Augustin de Romanet. In some societies where the state is a minority shareholder, wages have certainly been somewhat limited. Philippe Crouzet, the very bumpy head of Vallourec in great difficulties – which has just been renewed – saw its earnings drop from 1.5 million to 800,000 euros in 2015. It resigned to stock options and that performance shares. But these cases are limited.
The French state is found “deprived of its double voting rights, which he had so much to heart, on the vote on the remuneration of Carlos Ghosn and the vote the award of stock options or shares, “laments the consulting firm Proxinvest to shareholders. This did not prevent the remuneration of the CEO to be rejected! This is indeed one of the key elements of the agreement reached last December between Emmanuel Macron, the Minister of Economy, and Carlos Ghosn, after the tussle part on the Rights of double votes! The state keeps indeed its double voting rights at Renault (28% to 19.7% of capital), and therefore its blocking minority on strategic decisions. In exchange, he agreed that the voting rights are capped at 20% in some areas not considered strategic whose remuneration. Resolution number 5 on this cap was actually ratified it to 73.26% by the General Assembly on Friday.
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