Ghosn Nixes Special Renault-Nissan Exec Bonus Plan

Renault-Nissan CEO Carlos Ghosn refutes a report that the alliance is preparing to give top executives access to a secretive secondary bonus channel.

Earlier this week Reuters reported the plan, which proposes setting up an independent Dutch-based service company that would funnel bonuses to the executives based on cost-saving synergies between the two carmakers. The payouts would be exempt from French taxes and would not require reporting to shareholders.

But Ghosn told Renault’s stockholder meeting earlier today that the idea is nothing more than a consultant’s proposal. He says the plan hasn’t been presented to Renault’s board and insists no decision is expected anytime soon.

Last year Ghosn sparred over his compensation and Renault’s autonomy with Emmanuel Macron, France’s newly elected president, who was the country’s finance minister at the time. Macron pressured the carmaker to reduce Ghosn’s compensation, helped raise the French government’s stake in Renault to 20% and thwarted a Renault proposal to grant Nissan voting rights in the alliance.

Ghosn previously declared that any efforts to further integrate Renault and Nissan won’t be pursued until the French state sells its holding. Renault owns 44% of Nissan, and Nissan holds a 15% nonvoting stake in Renault.