Renault CEO Carlos Ghosn gave up his bonus, rejects Pelata’s resignation

Article by Christian A., on March 15, 2011

Renault S.A.’s CEO Carlos Ghosn passed up his bonus and rejected second-in-command Patrick Pelata’s resignation after Renault admitted that it wrongfully accused senior managers of industrial espionage. Ghosn said on TF1 television that Pelata's resignation was denied "in the interests of Renault."

Four people familiar with the issue said the carmaker’s mishandling of the espionage affair has weakened Ghosn in a tussle with the French government, its largest shareholder, over Renault’s future.

In January 2011, Ghosn said he was directly involved in the internal probe and that Renault had overwhelming evidence. Earlier in March 2011, Pelata said that he would take responsibility if it turned out the executives were innocent.

Analysts said that Ghosn's decision to keep Pelata, who has worked with the CEO since 1999, also emphasizes the company’s lack of succession planning.

Renault recently announced disciplinary action against three of its security officers and he vowed to compensate and reinstate three executives fired on suspicion of selling company secrets.

In a recent emergency board meeting, the carmaker said Ghosn, Pelata and other executives involved in the case will return 2010 bonuses and will receive no stock options in 2011. [via bloomberg]

Topics: renault, ceo

If you liked the article, share on:

Comments

Recommended

You probably heard about Ford’s CEO Mark Fields’ departure from the company. Fields has spent almost three years with the company, and now, he is going to be replaced by...
by - May 28, 2017
A racing team is claiming that it has managed to break the lap record in its category in the ever-demanding Nurburgring circuit in 2016 while driving a road-going Volvo S60...
by - May 27, 2017
Aside from the officially confirmed BMW 8 Series, the next generation BMW M5 (F90) is getting a lot of attention from the fans, enthusiasts and even potential customers around the...
by - May 27, 2017
Automobili Lamborghini’s preparations for the production of its first ever sports utility vehicle, the new Lamborghini Urus, has reached new grounds as the Italian carmaker is disclosing plans to construct...
by - May 26, 2017
The upscale version of the GMC Yukon body-on-frame sport utility vehicle – the GMC Yukon Denali – has been refreshed for the 2018 model year. It now sports a new...
by - May 26, 2017
Facebook

Youtube Channel

Tip Us
Do you have a tip for us?
Did you film an important event?
Contact us
Newsletter
Subscribe to our newsletter!
Subscribe
Galleries