Ghosn’s Renault lieutenant drew extra salary via holding: documentsReuters #000_EurosJanuary 12, 2019
PARIS/YOKOHAMA (Reuters) – One of Renault ( RENA.PA ) boss Carlos Ghosn’s senior executives received an additional six-figure salary unknown to the carmaker’s board via the Dutch joint venture overseeing its alliance with Nissan ( 7201.T ), according to sources and documents seen by Reuters.
Ghosn and Nissan senior director Greg Kelly, who are at the center of a financial misconduct scandal engulfing the carmaking alliance, approved payments totaling 500,000 euros ($572,000) to Renault General Secretary Mouna Sepehri, who is responsible for corporate governance in her role as board secretary.
There is nothing to suggest that the payments by Renault-Nissan BV (RNBV) were illegal or violated Renault-Nissan rules, but they highlight governance issues and potential conflicts of interest.
“Renault would be outraged by any publication of an identified executive’s pay, which constitutes personal information.”
She received 200,000 euros in 2013 and 100,000 euros annually from 2014-16 in addition to her Renault pay, according to statements addressed to her each year and the minutes of a 2013 meeting at which Ghosn and Kelly ordered the payments “for the performance of her duties as a management board member”.
While all RNBV directors were salaried Renault or Nissan managers, Sepehri was alone in receiving additional compensation for her board role.
In its response to Reuters, Renault said RNBV’s board of directors – who also include Ghosn, Bollore and Nissan CEO Hiroto Saikawa – was informed about members’ compensation.
“The RNBV management report, which is approved by the board and auditors, includes information about its executives’ pay,” the company said.
However, Sepehri’s fellow directors of unlisted RNBV were not told who received the 100,000 euros mentioned only as compensation to “board members”, according to a senior alliance executive who has seen the annual reports.
“Good governance requires that a committee proposal should be approved by the full board,” CEO Dessaint said.