French government tells Peugeot to review ‘inappropriate’ pension award to chief executive

Varin due to receive €310,000 net annually

Philippe Varin: will  be replaced next year by Renault’s former second in command, Carlos Tavares, in a move that may help it secure new funding from Chinese partner Dongfeng. Photograph: Reuters/Benoit Tessier

Philippe Varin: will be replaced next year by Renault’s former second in command, Carlos Tavares, in a move that may help it secure new funding from Chinese partner Dongfeng. Photograph: Reuters/Benoit Tessier

Wed, Nov 27, 2013, 17:09

The French government told PSA Peugeot Citroen to review an “inappropriate” pension award to outgoing chief executive Philippe Varin for which it has set aside €21 million in provisions.

Peugeot announced this week that Mr Varin would be replaced next year by Renault’s former second in command, Carlos Tavares, in a move that may help it secure new funding from Chinese partner Dongfeng.

But ministers and trade unions bristled at the fact that Mr Varin, who will be stepping down three years before the end of his current contract, will receive an annual €310,000 pension net of tax and social charges.

The French carmaker is cutting more than 10,000 jobs as it struggles to recover from a six-year European market slump.– (Reuters)