Renault Proposes to Double CEO Ghosn’s Compensation

Renault SA plans to raise the compensation package for CEO Carlos Ghosn to €7.2 million from €2.7 million in 2013, the Financial Times reports.

Most of the increase would be in the form of a performance-related award of 100,000 shares valued at €4.1 million. Ghosn's variable pay would increase 31% to €1.8 million because the company met 90% of its financial targets for 2014.

Sources tells the FT that five of Renault's 19 board members, including the director representing the French government's 15% stake in the company, voted against the compensation package.

Renault notes the final amount could change. Ghosn's compensation won't be formally approved until shareholders vote on it at the end of April.

The FT adds that Ghosn, who also is CEO of Nissan Motor Co., in which Renault holds a 44% stake, will receive an additional payment from the Japanese company. Last year Nissan paid him about €7.6 million.