Wednesday, April 24, 2019
Home Business Renault renounces paying certain allowances to its former boss

Renault renounces paying certain allowances to its former boss

The board of directors announced that the former boss, currently in prison in Japan, would receive neither non-competition compensation nor stock-based compensation.

The World with AFP Posted today at 16h07, updated at 16h22

Time to Reading 2 min.

Renault's board of directors announced on Wednesday (February 13th) that it was giving up paying Carlos Ghosn a non-compete indemnity " equal to two years of fixed and variable remuneration ".

This clause, which would bar Ghosn from working for a competitor for a period of two years, represents around four million euros, according to estimates from the investor advisory firm Proxinvest.

The former boss, currently held in Japan, will not be able to benefit either from the shares awarded between 2015 and 2018 as CEO, because the «Condition of presence within Renault (…) is not completed »says the council in a statement.

An estimated loss of 21.6 million euros

These actions include "Variable compensation for the years 2014 to 2017", as well as "Performance share plans for the years 2015 to 2018", detailed the automaker.

From 2015 to 2017, Renault awarded 100,000 shares of the company each year to Mr. Ghosn, which he could receive four years later, with a condition of presence in the company and a performance condition as a manager . In 2018, the group allocated 80,000 shares to it. The loss of all these rights amounts to approximately 21.6 million euros at the current share price (around 57 euros), according to Proxinvest's estimates.

At the end of January, the Minister of the Economy, Bruno Le Maire, declared that he would be "Very vigilant" on the amount of Carlos Ghosn's severance pay: "Nobody would understand [qu’elles] be exorbitant. " "I will not let other Renault shareholders count on this subject", he added, the State holding 15% of the capital of the manufacturer and some 22% of the voting rights in general meeting.

Read the story: Carlos Ghosn: The 67 days of the fall of an industry icon

Carlos Ghosn changes his lawyer

On the judicial side, Carlos Ghosn's chief lawyer, Motonari Otsuru, announced Wednesday that he had resigned. No reason has been given to explain this decision, which comes as a first meeting was scheduled Thursday between lawyers, judges and prosecutors to prepare the trial.

Read also Carlos Ghosn's principal lawyer, Motonari Otsuru, resigns

Did Mr. Otsuru resign or was he fired because his defense did not seem to bear fruit? Mr. Ghosn and his entourage wondered, in any case, the strategy of his lawyers.

In a statement sent by his relatives, Ghosn said he was hiring a new board – Junichiro Hironaka – for this new stage in the proceedings, the trial. "I wish to defend myself vigorously (…) not only to establish my innocence, but also to highlight the circumstances that led to my unfair detention "he writes offensive.

Our selection of articles to understand the case Carlos Ghosn

React or view all comments

LEAVE A REPLY

Please enter your comment!
Please enter your name here

This site uses Akismet to reduce spam. Learn how your comment data is processed.

Must Read

Nailed It! Returns for Season 3 With Marvel, Michelangelo and Creepy Clown Cakes

Has your life been missing baking disasters? Fear not, Nailed It! season three is almost here.Netflix revealed the fan-favorite cake baking series on May...

Brexit: Theresa May's approval of Tory members has hit a record low, according to survey – Live News | politics

Theresa May should hold her first PMQs since the Easter break today. Before the break, she told MEPs that they should use the holiday...

SpaceX does not admit that his crew capsule has exploded

Explosive situationSometimes, when you fill a small metal capsule with rocket fuel, it explodes,This seems to have happened last weekend when SpaceX tried a...

CDC says Delaware has confirmed the bloodsucking kissing bug

Officials confirm that the Kissing Bug made it to Delaware. According to the CDC, a Kent County family says an...