Thursday, April 30, 2015

At Renault, the state imposes its law – The World

There was the traditional sling unionists of the CGT and Sud, posted at the entrance to the hall of the Carrousel du Louvre in Paris, forcefully flags and leaflets denouncing the remuneration of the CEO Carlos Ghosn. There was dissatisfaction, just as usual, small shareholders claiming the microphone to demand the distribution of bonus shares.

But the real opposition at the General Assembly (GA) of which Renault s was held Thursday, April 30, was unprecedented. And not more than the other two, it has been successful. It was that of Mr. Ghosn and the majority of its board of directors, which had filed a resolution to counter the Florange law.



Macron is this félicte “good news”

Not a chance. The law, which grants double voting rights to all shareholders present in the capital for over two years, was finally endorsed. The AG has expressed an opinion at 60.53% for the famous Resolution 12 which would have allowed to keep the “one share, one vote” if she had obtained the two-thirds vote.

Read also: What is the double voting rights that the state wants to defend at Renault?

The state was assured it would be. Until then shareholder to 15% of the diamond manufacturer, he had boosted its stake to 19.7% (and 23% of voting rights) on April 8, with the sole aim of neutralizing anti-Florange.

On the road to Rome, Emmanuel Macron, the economy minister, has also welcomed the outcome. “This is good news [...] because it is consistent with the will of ours to defend a long-term capitalism, which values ​​and promotes the shareholders who are permanently installed. [It is] important that the State [...] is accorded these double voting rights for participation that is hers and in this case the 15% it holds sustainably “ the minister said.

Renault boss plays appeasement

Way to drive the point home, following a war of nerves that lasted three weeks between the government and the Renault management. On April 16, a week after the rise of the state capital, the automaker’s board had reaffirmed its commitment to the single voting rights. 23, its partner Nissan, also a shareholder to 15% of Renault (without voting rights attached to cross-ownership issues), was aligned with that position.

This could lead to a replica in good standing of the two groups before the State shareholder, while the Alliance – the joint structure created after the takeover and rescue of Nissan in 1999 – involves a delicate balance between the interests of those of French and Japanese. “The principle of cross-shareholdings [Renault-Nissan] based on a relationship of trust within the Alliance. The introduction of double voting rights will accentuate the imbalance between Nissan, which has zero voting rights, and the state “ regretted Philippe Lagayette Renault reference director at the AGM.

Mr. Ghosn however seemed to appease, referring to a “convergence on the fund [between the state and direction] to make Renault a successful business.”

From a distance, Mr. Macron has also taken care to recall, as it had done after the rise of the state capital, that “The additional share which was purchased by the State to ensure that a blocking minority would be constituted at the general meeting will be sold “.

The score of over 60% collected by anti-Florange however, shows that part was tightened. Moreover, the high turnout at the AGM (over 72% of shareholders, against 64% the previous year) indicate a mobilization likely dictated by the desire to respond in love at state power.



Ghosn’s remuneration voted

Individual shareholders present Thursday remained, in fact, dubious in substance but especially in the manner of imposing the law Florange Renault. “There is a big question mark, there is a lack of information. One wonders which of the two [the State or Ghosn] we conned “quips Serge, a former employee of the manufacturer now retired, and a shareholder for 15 years. “When you see the state can be as bad manager, we have the right to be worried” Daniel said for his part, also retired from the former board.

Other wind sling during the GA: the vote on the compensation of Mr. Ghosn. The latter, due to the good results of the manufacturer, facially tripled to 7.2 million euros (counting performance shares) under the Advisory since 2014. Last year, the vote on the subject (“ say on pay “) has collected on Thursday that 58% of votes for. A scrawny score for AG, where resolutions passed at least 90% are the exception, and especially lower than last year, when Mr. Ghosn had obtained 64% of votes – by making the red lantern CAC 40 .

It should be said that the salary of the CEO crystallize critical and are traditionally rejected by the State …, a follower of wage restraint in companies of which he is a shareholder. The reaction of Marc Ladreit Lacharrière, president of Fimalac and Renault’s director chairing the Governance Committee, has done little to douse the discontent. “There is no lesson” the worst score on the say on pay in 2014, he has dealt in response to a question on the subject .

Read also: Why Renault and the State opposed

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