The merger between FCA and Renault has crossed another hurdle overnight with FCA agreeing to a compromise with the French government. The issue surrounded the French government's desire for a guaranteed seat on the company's board of directors and effective veto power on CEO appointments. In a compromise, Renault would give up one of its own board seats for one occupied by a representative of the French government. The makeup of the board would then be 4 seats allocated to FCA appointees, three to Renault appointees, and one to the French government. France is Renault's largest shareholder with a 15% stake in the company.
Additionally, Renault would give up one of its two seats on the 4 member CEO selection committee to the French government.
The new proposal goes to Renault's board for consideration.
Recommended Comments
Join the conversation
You can post now and register later. If you have an account, sign in now to post with your account.
Note: Your post will require moderator approval before it will be visible.