This is a first: Friday gathered in general assembly, Renault shareholders Friday rejected the remuneration of its CEO Carlos Ghosn in respect of 2015 according to the practice of “say on pay”. At 54.12%, they issued a negative opinion on the remuneration of the CEO of the manufacturer, which amounted last year to 7.251 million euros, of which 1.737 million in cash, an increase of 0.49% compared 2014.
in 2013, this remuneration amounted to “only” 2.7 million euros. It is the establishment of performance share awards which replaced stock options from that time, which explains the jump in Renault boss of remuneration for two years. Granted subject to performance conditions, they are valued at 4.1 million euros last year.
Maintenance for 2015
This vote is advisory but it is a serious setback for Carlos Ghosn disowned by its shareholders. Immediately the known result, the remuneration committee and the board met without the presence of Carlos Ghosn as required by law. They announced to have approved the maintenance of CEO compensation for 2015, while undertaking a mission on the “useful developments” in the coming years. Counsel recalls in passing the “quality of the results of the year 2015 with a record turnover of over 45 billion euros, up 10.4% and an operating margin of 5.1 % ahead of two years on the objectives of the plan “Renault 2016 Drive the change” “.
The state, which controls 19.74% of Renault, weighed heavily in the decision. But he could not use his power to double voting rights, since the resolution was subject to ordinary title. The president of consulting firm Proxinvest investment, Pierre-Henri Leroy, a shareholder of Renault, was arrested earlier Ghosn’s remuneration at the session of questions / answers of the general meeting of shareholders, it reproaching including a lack of transparency.
strained Relations
in response, Carlos Ghosn stated that it was not “not him” and “the Board of Directors, which sets the remuneration itself prepared by the remuneration Committee” . “As a shareholder you give delegation [...] to the board, he shall not judge based on a whim but judge whether the way the CEO is paid is in line with his efforts, his talent, the situation [...] we have a very clear, transparent “, he said, adding that “the most important thing is that Renault goes well” . In addition to his compensation at Renault, Carlos Ghosn can also count on its income from Nissan, which he is also CEO and amounted to over EUR 8 million for 2014. In total, the Renault-Nissan boss have pocketed in 2015 a higher salary 30% to that of Dieter Zetsche (Daimler) and three times greater than that of Matthias Müller, the new boss of Volkswagen, the world of industry.
This vote shareholders immediately reversed by the board, may tender again the relations between the state and direction of the builder who had opposed for months on double voting rights established by law to empower loyal shareholders as the state. After a long standoff between the public shareholder and Carlos Ghosn, an agreement was reached to stabilize the alliance with Nissan. The state retained its double voting rights at Renault (28% to 19.7% of capital) and thus its blocking minority on strategic decisions in exchange for which they were capped at 20% of the decisions considered part of management internal company whose remuneration. A cap ratified 73.26% Friday by the General Assembly, which has not prevented to reject the Renault boss pay.
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