Bankers within the Renault-Nissan alliance are planning to channel millions of euros in bonuses to key managers, including chairman Carlos Ghosn, through a dedicated service company.
According to documents viewed by Reuters, the new company, registered in the Netherlands, would receive a share of new synergies from Renault, Nissan and Mitsubishi. These sums would then be passed on as cash and stock bonuses designed to “encourage executives to pursue synergy opportunities,” says investment banking firm Ardea Partners.
It is said that the proposed new bonus plan would help encourage Renault and Nissan to operate much like a merged company. Reuters says that each automaker would pay 8 per cent in each annual increase in synergies, effectively meaning that if new Mitsubishi projects managed to save 1 billion euros, 80 million euro would be added to the bonus pot. Of this pot, one-third would be received by executives at the alliance's six top positions, four of which are currently held by Ghosn.
Unsurprisingly, the plan is said to have the full backing of Ghosn and is expected to be implemented later this year.
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