Ousted Carlos Ghosn seeks retirement benefit from Renault

By: |
Published: January 14, 2020 8:33 AM

These shares, handed out from 2015-2018 on the condition he was still at the firm four years later, are now worth 15.5 million euros at current prices.

However, his team argues Ghosn did not quit of his own free will but left the company as he was no longer able to lead it from behind bars.

The former chief executive of Renault Carlos Ghosn, who fled Japan while awaiting trial on financial misconduct charges, is seeking the payment of a retirement payment by the French carmaker that he says was unfairly withheld. Ghosn has filed a complaint with a French employment tribunal in Boulogne-Billancourt outside Paris, when Renault is headquartered, a source close to Ghosn told AFP, confirming a report in Le Figaro daily.

A Renault spokesman said the company had received notice of the lawsuit in December. Both sides said a hearing is expected at the end of February, without giving a precise date. The claim focuses on the payment of a retirement benefit of 250,000 euros ($278,000) which Renault did not pay on the grounds that Ghosn quit at the end of January 2019 while he was still in prison in Japan.

Ghosn, 65, was arrested in Tokyo in November 2018 on charges of financial misconduct while head of Renault’s alliance partner Nissan, including a claim he under-reported millions of dollars in salary.

However, his team argues Ghosn did not quit of his own free will but left the company as he was no longer able to lead it from behind bars.

A source close to Ghosn also added that an even larger claim is planned at a French commercial court to obtain an annual supplementary pension of 774,774 euros ($861,700) per year, as well as 380,000 shares granted for reaching performance targets.

These shares, handed out from 2015-2018 on the condition he was still at the firm four years later, are now worth 15.5 million euros at current prices. Ghosn fled Japan for Lebanon in late January while awaiting a trial he said would not be fair under Japan’s legal system.

Get live Stock Prices from BSE, NSE, US Market and latest NAV, portfolio of Mutual Funds, calculate your tax by Income Tax Calculator, know market’s Top Gainers, Top Losers & Best Equity Funds. Like us on Facebook and follow us on Twitter.

Financial Express is now on Telegram. Click here to join our channel and stay updated with the latest Biz news and updates.

Next Stories
1Bleak chances for Chinese apps to get interim relief from courts; thanks to govt’s ’emergency’ powers
2Chingari with 15 million downloads showing the way to other Made in India apps
3BSNL-MTNL merger may get delayed as govt-appointed panel wants spectrum first