Sunday 21 January 2018

Pressure put on Peugeot's CEO to give up pension


Philippe Varin, chief executive officer of PSA Peugeot Citroen.
Philippe Varin, chief executive officer of PSA Peugeot Citroen.

PEUGEOT'S outgoing chief executive is facing calls to give up part of his €310,000 pension when he steps down in 2014, three years before the end of his current contract.

The French carmaker, which is cutting more than 10,000 jobs as it struggles to recover from a six-year European market slump, this week named a former Renault executive to succeed chief executive Philippe Varin next year.

In keeping with company practice, Varin will receive no severance payment when he leaves the group, unlike most of his counterparts at other major French companies, Peugeot has said.

But French politicians have joined criticism of Varin's pension, led by the CGT union, which drew attention to a €21m provision in Peugeot's accounts to cover the future payouts.

Jean-Louis Borloo, a former minister who served in France's last right-wing government and now heads the centrist UDI grouping, said the pension plan was an example of "excessive" compensation packages.

"It has been known for executives to give them up," Borloo said. "The important thing is to save Peugeot."

Irish Independent

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