Mr Pierre Bilger, former chairman and chief executive of Alstom, has bowed to intense pressure to return a €4.1 million "golden parachute" he received after quitting the beleaguered French engineering group in March.
Mr Bilger has been severely criticised for his severance package, especially as his successor, Mr Patrick Kron, was forced to seek state backing for a €2.8 billion rescue package this month to save Alstom from bankruptcy.
His surprise decision could set a precedent in France and increase pressure on Mr Jean-Marie Messier, former head of Vivendi Universal, to follow suit. Mr Messier will today hear whether a New York court will back his claim for a €20.5 million golden parachute.
Mr Bilger wrote to Alstom last week explaining his decision to return his €4 million severance bonus and the €100,000 he was owed on his contract as chairman for the remainder of the year. He kept his €1 million salary for time worked up to March.
"Principally, I took this decision so as not to be an object of scandal for my former colleagues, the company's employees and shareholders who placed their trust in me, but also to avoid becoming a distraction for my successor," according to Mr Bilger.
The issue of golden parachutes for departing chief executives has provoked anger in France. Mr Pierre Mehaignerie, head of the National Assembly's finance committee, this month called for an inquiry into "fat cat" pay-offs.
Vivendi has started legal proceedings in the US and France to block the €20.5 million payment to Mr Messier, which the media group claims is illegal under French law as it was only agreed by one director without full board authorisation.
Alstom has announced 5,000 job cuts but unions fear the final figure could be closer to 10,000.
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