PARIS, March 19 French carmaker PSA Peugeot
Citroen is to cut the size of its executive pension
packages, French daily Les Echos reported, months after public
criticism forced former chief executive Philippe Varin to turn
down his pension.
The struggling carmaker's supervisory board has approved new
methodology that cuts the amount provisioned by the company for
executive pension packages to 16 million euros ($22.26 million)
for 2013 versus 70 million for 2012, Les Echos reported in a
pre-released version of its Thursday edition.
A Peugeot spokesman confirmed that its rules for calculating
pension packages were being changed but did not comment on the
figures cited by Les Echos. "We will be publishing proposals to
be put to shareholders for the implementation of a new
methodology for pension packages," he said.
Peugeot, 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
Peugeot's previous CEO Philippe 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.
($1 = 0.7189 Euros)
(Reporting by Lionel Laurent; Editing by Andrew Callus)