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Renault scraps Ghosn's $34 mil deferred and severance pay

21 Comments
By Laurence Frost and Gilles Guillaume

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Finance Minister Bruno Le Maire had asked the government's lead board representative at Renault to "ensure that Mr Ghosn's compensation is cut as much as possible", a ministry official said on Wednesday.

"We've always been against excessive pay," the official said. "It's not about the presumption of innocence but ethics and decency."

If it is about excessive pay, why was it approved at the time? Clearly the original package WAS approved and the government's legal representative would have been aware of it.

Clearly the government didn't object when the package was first approved.

Which means this has everything to do with domestic politics in France right now. Given what is going on with the yellow vest movement, I am sure the government felt pressured to act.

I am assuming this will end up in court in France, at which point a French judge may uphold the contract / remuneration. In which case, the government can claim that they tried but they have to respect the courts and all of that.

Just a guess.

5 ( +7 / -2 )

Plenty of people taking advantage of Mr Ghosn’s incarceration to kick him while he is down.....

8 ( +10 / -2 )

The French are finally catching up with Japan in punishing Ghosn for his sins. It seems he had his finger in every pie. Truth is all coming out.

-9 ( +4 / -13 )

They are all jumping on board this one...

0 ( +2 / -2 )

It is ashame these people have no ethic from Japan to France they are all in cohort to covered up their own mistake.I believe Ghson never even force them to pay ,they do it willingly from the three automaker alliance .Now they try to kick the hotpotato to Ghson since he is incarcerated no way to fight ,especially in the Japanese justice system ,even with money very tough uphill fight .I hope he win and come back to bring the truth of colluding within the board. Get those unrepentant jackass.

-2 ( +3 / -5 )

The media always seems add enough spin that it's difficult to understand the original intent. It's true Renault is not compensating Ghosn for the amount stated but the article doesn't explain the amount is for a non-compete clause that was always optional and the the remaining 90% of the total is actually a value for an option on performance shares not actually cash. The performance shares also come with the stipulation that Ghosn be present at Renault when he resigns which, due to Japan's hostage justice system, is impossible.

Renault did say

“Mr. Ghosn retains, as of the date hereof, his positions within Alliance Rostec Auto BV and Renault do Brasil,” Renault added.

Renault is trying to balance their domestic troubles and the Ghosn situation. It'll be interesting to see how it all works out.

1 ( +4 / -3 )

Saikawa and the Nissan conspirators are no different to yakuza for extortion of LEGALLY ENTITLED pay theft

2 ( +5 / -3 )

It just happens to be a bad time for the French Government and a bad time for the vehicle manufacturers, so the time of excess pay for Ghosn and many CEOs is over, but I still don't like to see him in jail over this.

-1 ( +1 / -2 )

Because of Japan's backward justice system, and the fact that it has now caused Ghosn heavy financial loss, if Japan cannot find him guilty Ghosn may now have grounds to subpoena the Japanese government to the tune off many millions (of his personal losses while being unnecessarily confined).

Luckily for Japan, if that event were to occur:

a) Japan doesn't have the US type litigious legal system, AND

b) Japan can just put a kangaroo court together within minutes and find themselves "innocent" of such allegations.

Japan had better hope they can pin this on him, lest they brace for some severe damage when Ghosn is released. Can't wait to see what happens.

2 ( +3 / -1 )

The French are finally catching up with Japan in punishing Ghosn for his sins. It seems he had his finger in every pie. Truth is all coming out.

No truth has come out at all yet, he has not even been to trail.

The only truth that we know up to now is that Japanese law is not fit for purpose.

2 ( +3 / -1 )

"Renault said it had scrapped 30 million euros ($34 million) in deferred and severance pay to former boss Carlos Ghosn, forced out last month following his arrest for suspected financial misconduct at Japanese affiliate Nissan."

IF, Mr Ghosn, is found innocent, will the French Renault co have to reinstate the original payout as in their teams/agreement?

2 ( +2 / -0 )

If it is about excessive pay, why was it approved at the time?

maybe it was Ghosn who approved it, and other execs were too afraid to say anything.

-1 ( +0 / -1 )

How shameless can it be.......................taking down a man's life , just not to pay him ???. Talking abt borrowing a knife, Nissan had done what we have seen every day for 32 years. Kill a man for money but do not dirty yr own hands. Very sorry, no wise people will believe Nissan anymore. Talk abt bad actions, this is now a world's moral problem & human rights problem. Good Luck. All 3 car companies have lost more than money. low esteemed is no more for the future.

1 ( +2 / -1 )

Cynical game from the French government to calm down the yellow vests unrest.

Severance package scarped for absenteeism (!).

If Ghosn is convinced guilty the French government wins, if Ghosn is released not guilty he will get judicial compensation, which will not be understood as "salary" and the government wins again.

Cynical!

0 ( +1 / -1 )

If it is about excessive pay, why was it approved at the time?

maybe it was Ghosn who approved it, and other execs were too afraid to say anything.

"Maybe" does not exist in the language of first world countries courts. "Beyond reasonable doubt" does.

I can see that when it comes to "rule of law", Japan has a long way to go to being first world.

1 ( +2 / -1 )

Obviously, something is terribly wrong.

0 ( +0 / -0 )

Ex_Res, I said "Maybe" because it was about France.

0 ( +0 / -0 )

Ex_Res, I said "Maybe" because it was about France.

Same legal principles apply in France. "Maybe" is not admissible court language without evidence.

0 ( +0 / -0 )

One outcome may be that the French government trades Ghosn's personal freedom for a weakened say in how Nissan is run. In particular, Renault has 43.4% voting shares in Nissan and these may be permitted to be partially or fully revoked. If so, Ghosn will be released, returning to France to run Renault, and it's unlikely he will step foot in Japan again. If this was to happen, people wouldn't be surprised that Ghosn once back in France would sue Nissan there (or the USA or UK) for unfair dismissal. This could be quite lucrative for him, as Mr. Woodford, the former CEO of Olympus found out. Woodford reportedly received about US$10m for his troubles. It leaves to believe Ghosn should be able to ask triple that amount. Doing so would also offer some measure of vindication.

0 ( +0 / -0 )

Seems in Japan in order to be successful as a Foreigner, you need to keep your head down and don't draw attention to yourself.

0 ( +0 / -0 )

Seems in Japan in order to be successful as a Foreigner, you need to keep your head down and don't draw attention to yourself.

Very true indeed. But remember, when you go to extend your visa, the immigration office detest successful foreigners.

And don't forget, immigration is under the Ministry of Justice.

0 ( +0 / -0 )

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