Carlos Ghosn won’t get his $34 million payout from Renault

By Charles Riley, CNN Business

London (CNN Business)Carlos Ghosn won’t be getting a golden parachute from Renault.

The French carmaker said Wednesday that it would not be paying its former CEO and chairman roughly €30 million ($34 million) he was due in deferred compensation and other benefits.

Ghosn resigned from Renault (RNLSY) last month after he was charged in Japan with financial misconduct at Nissan (NSANF), where he also served as chairman.

Renault’s board said in a statement that it would not hold Ghosn to a non-compete clause that would have entitled him to two years’ worth of compensation on his departure from the company.

It also said it would scrap roughly 450,000 shares in deferred compensation that were “subject to his presence within Renault.” The shares are worth around €25 million ($28 million) at current prices.

One of the industry’s most prominent figures, Ghosn has been detained by Japanese prosecutors since November 19.
They have charged him with understating his income at Nissan by about $80 million between 2010 and 2018, and abusing his position by using the company to help sort out personal investment losses.

Ghosn denies the allegations against him, claiming they’re the result of “plot and treason” by executives at Nissan, one of Renault’s partners in an industry alliance that also includes Mitsubishi Motors.

Nissan said Tuesday it has booked a charge of 9.2 billion yen ($83 million) related to payments to its former chief.
Renault’s board had resisted calls to fire him but his position became untenable after the French government, which owns 15% of the company, abandoned its support for Ghosn.