Renault boss faces tight shareholder vote on pay
PARIS: Renault boss Carlos Ghosn faces another nail-biting salary vote when the French government, the carmaker’s largest shareholder, is expected to oppose his 7.4 million euro ($8.7 million) 2017 payout at Friday’s annual shareholder meeting.
Ghosn, who lost a vote on pay in 2016, is also up for renewal as chairman and CEO for another four-year term in which he has pledged to pursue closer consolidation with alliance partners Nissan and Mitsubishi.
The French state holds a 15 per cent Renault stake with double voting rights, capped at 18-20 per cent for votes on remuneration and other ordinary business.
The Renault-nissan chief, 64, secured government support for his renewal - likely to overcome some investor misgivings over his accumulation of senior roles - after agreeing to cut this year’s overall pay package by about 30 per cent.
But the government has told Renault it will oppose Ghosn’s 2017 pay, in line with its policy, company and official sources said, raising the prospect of a second negative vote in two years. French “say on pay” votes have become binding since the last rejection.
This time Ghosn may squeak through with the backing of influential proxy adviser ISS, which recommended in a May 22 report that shareholders back a 2017 package that “does not raise any significant concern”. Early investor soundings suggest razor-thin majority support at the June 15 meeting.