Home Business Renault pays 30 million euros to former boss Carlos Ghosn | Business...

Renault pays 30 million euros to former boss Carlos Ghosn | Business news

Renault scrapped former boss Carlos Ghosn £ 30m (£ 26m) in premiums and severance pay after being forced to leave office for alleged misconduct by Nissan.

The French automaker board made the decision – backed by the government, its largest shareholder – as Ghosn continues to be detained in Japan.

It agreed to withdraw temporary and performance share awards of € 25.9 million for 2014/18 as this was "subject to its presence with Renault", a condition that was not met.

The board of directors also waives a clause "non-competition" in the value of another 4 to 5 million euros, which corresponds to a fee of two years.

She added that a decision on Mr Ghosn's salary package for 2018 would be taken separately at a board meeting on 15 March.

Renault's decision is being taken as the French government is being pressured by "Yellow Vest" protests over low pay and inequality.

Finance Minister Bruno Le Maire had asked the chief representative of the company's administration "to ensure that Mr. Ghosn's compensation is reduced as much as possible," a ministerial official told Reuters.

The announcement comes when it's revealed Two lawyers lead the defense team of Mr. Ghosn in Japan had left their roles.

Mr. Ghosn was arrested in November for financial disciplinary sanctions and soon after was ousted as chairman of Nissan, which is in a global alliance with Renault.

Since then, he has been charged with Nissan and another director for failing to disclose more than $ 80 million in compensation payments in 2010-2018, which he later ordered.

Mr Ghosn denies that the transactions were illegal or required disclosure.

Renault continued to support Mr. Ghosn as chief until he was appointed chairman and CEO last month.

Last week, the company provided prosecutors with evidence that it had paid part of its marriage costs for 2016 – in the first case of alleged misconduct by Renault.

Mr. Ghosn's representatives said he did not know that the French company had rented a lock on the Versailles site amounting to € 50,000 and that he now intends to repay it.

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