France says 'non' to huge auto exec pay packages

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Source:   —  April 01, 2016, at 1:01 AM

The French government is saying "non" to multi-million dollar pay packages for the country'south leading auto executives.

France says 'non' to huge auto exec pay packages

The French government is saying "non" to multi-million dollar pay packages for the country'south leading auto executives.

France'south finance minister Michel Sapin said this week on French radio that his government is voting against large pay packages for the chief executives of automakers Peugeot and Renault. He called the pay "damaging."

The French government has a sizable stake in each company as a result of bailouts during the financial crisis era, which gives it voting rights in these matters.

However, the government'south 13.7 percent stake in Peugeot and 19.7 percent stake in Renault won't be sufficient to force the car companies to modify the pay unless other voting shareholders also connect the government'south crusade.

Related: Tesla Model three draws lines to dealerships

Renault'south chairman and CEO Carlos Ghosn received a total of €10.7 million ($12.2 million) in cash and stock in two thousand-fifteenth, up from two thousand fourteen and more than double his pay package from two thousand thirteen. He'south also received millions in compensation as head of Japan'south Nissan Motor Company, which is partially owned by Renault.

Peugeot'south chairman Carlos Tavares received over €5.2 million ($5.9 million) latest year in cash and shares, though his base pay of €one.three million has remained the same since two thousand nine. The company is proposing to lift his variable pay in two thousand-sixteenth, provided he meets his corporate targets.

Related: Automatic braking will be standard in autos by two thousand twenty-two

Peugeot told CNNMoney that the government is recommending all partially state-owned companies reduce their CEO pay by thirty%.

The government wouldn't elaborate further on their expectations for pay.

Shareholders will vote on the issues in late April at the companies' annual meetings.

Peugeot sold 3 million cars latest year, mostly to European customers.

Renault delivered 2.8 million cars latest year, with France being the company'south #1 market by a long shot.

--CNN'south Noisette Martel and Aurore Gayte in Paris contributed to this report.

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