Renault Cuts €30 Million Severance Payment for Ghosn

Renault SA’s board has voted unanimously against granting former Chairman and CEO Carlos Ghosn two years of severance pay worth about €30 million ($34 million).

The decision came at the urging of the French government, which owns a 15% stake in Renault. The board also rescinded Ghosn’s eligibility to receive Renault shares that were part of a variable compensation package in 2014-2017.

The government had warned against granting Ghosn an “exorbitant” severance package that would spark a strong backlash from the public. The Renault board will decide on his final remuneration on March 15.

Ghosn was arrested in Japan on Nov. 19 and continues to be held on suspicion of multiple financial misdeeds. He has been charged with underreporting his compensation as chairman of Nissan Motor Co. by $82 million over eight years and for improperly transferring personal liability for currency trade losses to the company. Additional charges are likely.