ArrowArtboardCreated with Sketch.Title ChevronTitle ChevronEye IconIcon FacebookIcon LinkedinIcon Mail ContactPath LayerIcon MailMenu BurgerPositive ArrowIcon PrintIcon SearchSite TitleTitle ChevronIcon Twitter
Nissan's Ghosn crisis

Ghosn loses severance pay from Renault

Total of $34m canceled amid French government pressure

French carmaker Renault has decided not to pay ex-chief Carlos Ghosn severance pay that would have amounted to two years' worth of compensation. (Photo by Kei Higuchi)

PARIS -- Renault will skip tens of millions of dollars in planned payments to former Chairman and CEO Carlos Ghosn after its top shareholder, the French government, warned of a backlash from the public.

The automaker's board said it "unanimously decided" on Wednesday to waive Ghosn's noncompete agreement and so will not pay what would have been two years' worth of compensation. He also loses the rights to Renault shares granted for deferred and performance pay since the mid-2010s, with the company citing his "presence" as a condition he no longer meets.

In all, the detained ex-chief will be denied $30 million euros ($34 million) in compensation, Reuters estimated.

The government recently cautioned the automaker over the matter. "No one would understand if the severance pay of Carlos Ghosn were exorbitant," Economy and Finance Minister Bruno Le Maire said in late January.

"We are going to be extremely vigilant," Le Maire said.

The board said it will decide on Ghosn's 2018 remuneration at a March 15 meeting.

Ghosn's troubles began this past November with his arrest in Japan on suspicion of underreporting his compensation at Renault alliance partner Nissan Motor, which quickly fired him as chairman and representative director. Ghosn resigned as Renault chief in January.

Sponsored Content

About Sponsored Content This content was commissioned by Nikkei's Global Business Bureau.

You have {{numberArticlesLeft}} free article{{numberArticlesLeft-plural}} left this monthThis is your last free article this month

Stay ahead with our exclusives on Asia;
the most dynamic market in the world.

Stay ahead with our exclusives on Asia

Get trusted insights from experts within Asia itself.

Get trusted insights from experts
within Asia itself.

Get Unlimited access

You have {{numberArticlesLeft}} free article{{numberArticlesLeft-plural}} left this month

This is your last free article this month

Stay ahead with our exclusives on Asia; the most
dynamic market in the world
.

Get trusted insights from experts
within Asia itself.

Try 3 months for $9

Offer ends October 31st

Your trial period has expired

You need a subscription to...

  • Read all stories with unlimited access
  • Use our mobile and tablet apps
See all offers and subscribe

Your full access to the Nikkei Asian Review has expired

You need a subscription to:

  • Read all stories with unlimited access
  • Use our mobile and tablet apps
See all offers
NAR on print phone, device, and tablet media