Ghosn Faces Another Battle Over Pay

Renault SA Chairman and CEO Carlos Ghosn will face another challenge from the French government about his compensation during the company’s shareholder meeting on Friday.

France owns 15% of Renault and holds double voting rights. It has been pushing for more than two years for “moderation” in executive pay for all the French companies in which it holds a stake.

Ghosn, 64, is in line to receive €7.4 million ($8.7 million) from Renault for his work in 2017. He also serves as chairman of Nissan, Mitsubishi Motors and the alliance that involves all three carmakers.

Ghosn’s compensation was similarly questioned two years ago. A nonbinding shareholder vote led by France rejected the Renault board’s plan to multiply the executive’s compensation for 2015 to €7.2 million from €2.7 million in 2013. The board, which ignored the vote, argued that Ghosn’s performance-based pay was justified by the financial results of Renault and Nissan.

But Reuters point out that France’s “say on pay” shareholder votes are now binding. The news service predicts a close vote on Ghosn’s compensation that could cancel his scheduled €1.5 million in variable pay and €4.6 million in long-term performance shares.