This could be the final episode in the Renault EV espionage case: after a meeting held on Monday, CEO Carlos Ghosn presented the board with an action plan that includes the reinstatement and/or compensation of the three sacked executives and the intention to restore Renault’s image and public confidence in the company and its management.
In order to do the latter, Ghosn announced that he, COO Patrick Pelata and all senior executives involved “will waive their variable remuneration accruing for 2010 as well as any stock option entitlements for 2011.” Surprisingly, no one was fired, although Pelata offered his resignation to Ghosn. The CEO refused to accept it, emphasizing his and Pelata’s commitment to leading Renault. Speaking to French TV station TF1, Ghosn said he rejected the COO’s resignation “in the interests of Renault”, adding: “I didn’t want to add crisis to crisis.”
The action plan also includes “appropriate disciplinary proceedings against three employees in Renault’s security division”, as the internal investigation conducted by the Central Directorate of Interior Intelligence (DCRI) points to organized fraud, with at least one Renault employee being involved.
Finally, in order to improve the protection of the company, Renault will overhaul its security structures, based on an analysis of recent events. The affair could prove very costly for Renault, as the three ousted executives are expected to seek damages well beyond Ghosn’s €9.2 million annual salary. “Nobody would be shocked if he left with eight, nine or ten million euros,” said Michel Balthazard’s lawyer about his client in an interview. Matthieu Tenenbaum will also demand “substantial material compensation”, according to his attorney.
By Dan Mihalascu
Sources: Renault, Businessweek
