Luca De Meo, general director of the Renault group, during the presentation of the new electric Renault R5 E-Tech, on February 26, 2024 at the Geneva International Motor Show (AFP/Archives/Fabrice COFFRINI)
Luca de Meo will serve a second four-year term at the head of Renault, the car manufacturer confirmed on Friday, while his remuneration was contested by more than a quarter of its shareholders.
Mr. de Meo’s mandate was renewed “unanimously” until May 2028 by Renault’s board of directors, its president Jean-Dominique Senard said on Thursday.
The group’s shareholders, meeting at a general meeting on Thursday, also confirmed an increase in Mr. De Meo’s remuneration, which could reach 5.53 million euros annually.
The opposition, however, was strong: 27.87% of shareholders voted against the resolution on Mr. De Meo’s salary. The consulting firm Proxinvest recommended that they oppose it, as it did for Carlos Tavares at Stellantis.
According to Renault management, this was to “ensure the attractiveness of the general manager’s remuneration” compared to 13 other automobile companies such as Stellantis and Volkswagen and related sectors with Michelin or Siemens.
To this remuneration must be added performance shares, paid over the long term, which represent more than 5 million additional euros at the current share price.
Since his arrival at the head of the group in 2020, after the ouster of Carlos Ghosn, the former boss of Seat has straightened out the accounts of the group, which was in bad shape.
In four years, Mr. De Meo has reorganized the Diamond by cutting staff, unraveled the Alliance with Nissan, and increased collaborations with other players in the automobile, technology and materials sectors.
He bet on lower sales and higher prices, with record profits to boot. And prepared a new offensive in its electric ranges, with the Scenic then the new R5 this year.
© 2024 AFP
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