Renault Ignores Shareholder Vote to Pay CEO Ghosn Less

Renault SA’s board has shrugged off a nonbinding shareholder vote led by the French government to reduce CEO Carlos Ghosn’s compensation for 2015.

Investors accounting for about 54% of Renault voting rights opposed the board’s plan to pay Ghosn €7.2 million ($8.2 million) in salary and compensation for his work in 2015. He also receives separate compensation as CEO of Nissan Motor Co., which will announce its payment to him in June.

The board insists the company’s 2015 financial results—which included gains of 10% in revenue and 48% in net income—justify the original pay package. It reiterates its plan to compensate Ghosn with €1.2 million ($1.4 million) in fixed salary, €1.8 million ($2 million) in variable pay and €4.2 million ($4.8 million) in deferred bonuses and stock for 2015.

The French state, which holds an 18% stake in Renault, has called for “moderation” in payouts to Ghosn and executives at other public companies in which the government owns equity. Proxinvest, the Paris-based shareholder advisory firm, also urged a cutback in Ghosn’s compensation.