Amount has been seen as excessive.
The French government could intervene after Renault's board defied shareholders and approved a plan to pay CEO Carlos Ghosn $8.1 (€7.2) million for last year's work.
The amount includes a $1.3 (€1.2) million salary, a $2 (€1.7) million performance-based bonus, and $4.7 (€4.1) million in stock and deferred bonuses. The payment has been seen as excessive by some people in France but it's interesting to note that Ghosn made $9 (€8) million as CEO of Nissan.
The decision to override shareholders hasn't gone over well with the French government which is Renault's largest shareholder with more than 18 percent of the company's voting rights. As a result, a council on corporate governance will review the decision. There's no word on which way the council is leaning but the group consists of executives and representatives from the Mouvement des entreprises de France employers association.
France's President, Francois Hollande, has even weighed in on the issue by saying "I've been told there is a code of good conduct. If it's not applied there will be consequences." Hollande also hinted the government could make shareholder votes on executive pay binding if their recommendations are ignored by companies.
Source: Automotive News