Thursday , June 17 2021

Ghosn loses part of his salary and changes his defense team

Carlos Ghosn, imprisoned in Tokyo jail for alleged financial abuse, was deplored yesterday by the Renault board of directors for his incompetent compensation and compensation for his share of about 30 million euros (or $ 33.8 million) just as he muscles your defense team.

'The Council decided unanimously (…) to waive the use of the non-compete commitment made by Mr Ghosn and therefore not to pay him the corresponding compensation equal to two years of fixed and variable compensation', the French automobile manufacturer This clause, which would prevent Ghosn from working for a competitor for a period of two years, amounts to about 4 million euros (or $ 4.5 million), according to the Proxinvest-based consulting firm. The former boss is the same lost its rights to the "final acquisition" of shares awarded between 2015 and 2018 as CEO, because "a condition for presence within Renault (…) is not fulfilled." These shares include "variable remuneration for the 2014- 2017 "and" share plans for the years from 2015 to 2018, "explained the car maker.

From 2015 to 2017, Renault annually gives 100,000 shares to Mr Ghosn, which he may receive four years later, with a condition of presence in the company and a performance condition as a manager. In 2018 the group distributed 80,000 shares. The loss of these rights amounts to about EUR 21.6 million (or $ 24.4 million) at the current share price (about EUR 57 or USD 64), according to Proxinvest, plus EUR 4 million. the postponed part of the variable compensation between 2014 and 2017. The total remuneration is therefore EUR 29.6 million (or $ 33.4 million), escaping from Carlos Ghosn detained in Japan in November for alleged financial abuse and breach of trust.

"Restore My Innocence"

Asked about RTL, French lawyer Carlos Gosn, Me Jean-Yves Le Borgne did not rule out the possibility to challenge Renault's decision. "We will see when the time will come" if "it is or is not in accordance with the contract," says the lawyer, ensuring that his client's remuneration is not "arbitrary" but "contract condition". Bruno Azier, delegate of CFE-CGC, the first trade union organization of the group, said in turn "welcoming the decisions taken by Renault, including the non-activation of the non-compete clause." "This is a solution that looks extremely wise and has a bearing on Carlos Gosn's situation and the current social context," including the movement of yellow vests, said Charles Pinel, Proxinvest's partner.

Earlier that same day, the builder of the Renault-Nissan-Mitsubishi Motors automobile union decided to change his defense team. His law firm announced without explanation that Motonari Oturi, a former prosecutor who defended his case, resigned with his colleague Masato Osikubo. Mr. Ghosn explained shortly after he "decided" to engage Mr. Janichiro Girona, the famous in Japan, "as they entered the trial phase." "I look forward to the vigorous defense and this choice for me is the first step in the process not only to restore my innocence but also to shed light on the circumstances that led to my unjust detention." he said in a statement sent to the press.

According to Jean-Eve Le Bourne, this lawyer's shift aims to "give his defense more energetic" to Japan. Carlos Ghosn "decided to look for a new lawyer," not his former council, who decides to give up the former CEO's protection, he assured. Mr. Girona now has the delicate task of defending the former industry captain who has ever been honored in the archipelago to rescue Japanese automaker Nissan from a bankruptcy that has now been defiled.

Mr Ghosn resigned at the end of January from his post as Renault's Chief Executive Officer. He is still an ordinary member of the board of directors of the company, a function he must lose at the next general meeting of shareholders scheduled for spring.

Source: AFP

In the news

Source link