RNO Renault SA

By Nick Kostov 

Renault shareholders, led by the French government, rejected the compensation package for Chief Executive Carlos Ghosn, the latest pushback against executive pay in France.

More than 54% of shareholders voted against Mr. Ghosn's pay package of EUR7.3 million ($8.3 million) in 2015 at its annual general meeting in Paris. A total of 45.9% approved the package, while less than 1% abstained.

The vote is nonbinding, however, and Renault's board decided to maintain Mr. Ghosn's pay packet after meeting Friday evening.

"The board once again acknowledges the quality of the 2015 results," it said in a statement, adding that it had asked the remuneration committee to "provide proposals for the compensation structure for 2016 and subsequent years."

Mr. Ghosn's pay was flat last year after almost tripling in 2014.

The French state is Renault's largest shareholder after increasing its stake to 19.7% from 15% last year. Government figures including Prime Minister Manuel Valls and Finance Minister Michel Sapin also criticized PSA Peugeot Citroën CEO Carlos Tavares last month after his pay almost doubled to EUR5.3 billion for 2015 as a reward for his efforts in turning around the company.

The French government regularly opposes compensation packages for executives in companies in which it holds stakes.

Renault reported a 12% increase in revenue earlier this month as strong European demand helped offset declining demand in emerging markets.

Write to Nick Kostov at Nick.Kostov@wsj.com

(END) Dow Jones Newswires

April 29, 2016 13:51 ET (17:51 GMT)

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