PSA to cut executive pension packages, report says
PARIS (Reuters) -- PSA/Peugeot-Citroen will cut the size of its executive pension packages, the French daily Les Echos reported, months after public criticism forced former CEO Philippe Varin to turn down his pension.
The struggling carmaker's supervisory board has approved a new system that cuts the amount provisioned by the company for executive pension packages to 16 million euros ($22.26 million) for 2013 versus 70 million euros for 2012, Les Echos reported Thursday.
A PSA spokesman confirmed that its rules for calculating pension packages were being changed but did not comment on the figures cited by the report.
"We will be publishing proposals to be put to shareholders for the implementation of a new methodology for pension packages," the spokesman said.
PSA, which is raising 3 billion euros in a rescue deal with Chinese partner Dongfeng and the French state, is in the midst of a 1.5 billion euro savings drive under the leadership of new CEO Carlos Tavares and incoming chairman Louis Gallois.
Varin said in November he would turn down his pension package, for which the company had set aside 21 million euros, because of the public backlash it had sparked in France.Contact Automotive News