Renault-Nissan considers hidden bonus plan - documents

Renault-Nissan considers hidden bonus plan - documents

PanARMENIAN.Net - Renault-Nissan alliance bankers have drawn up plans designed to channel millions of euros in additional, undisclosed bonuses to Chairman Carlos Ghosn and other managers via a specially created service company, according to documents seen by Reuters.

Under the preliminary proposal, Renault, Nissan and Mitsubishi would pay the Dutch-registered company a share of new synergies from their carmaking alliance, set to top 5.5 billion euros ($6.2 billion) next year.

The funds would be passed on as cash and stock bonuses to "encourage executives to pursue synergy opportunities", according to a presentation by Ardea Partners, an investment banking firm advising Ghosn on closer alliance integration.

Renault-Nissan declined to comment on the incentive plan or its chances of adoption. Spokeswoman Catherine Loubier did not respond to detailed questions from Reuters about the proposal and the relationship with Ardea, which also declined to comment.

Brazilian-born Ghosn, 63, is in open conflict with the French state, Renault's biggest shareholder, whose opposition to his CEO pay package was instrumental to its symbolic rejection in a non-binding vote at last year's shareholder meeting. His combined 15.6 million euros in Renault-Nissan pay amounted to the third-biggest haul among French CAC 40 company bosses.

In response, Renault cut Ghosn's variable pay component by 20 percent and clarified bonus criteria. Shareholders will have their say again at the 2017 general meeting on Thursday, in a vote that has now become binding under French law.

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