French car maker Renault won't pay former Chairman Carlos Ghosn millions of euros in compensation following his resignation.
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Renault said in a statement Wednesday its board unanimously decided to waive Ghosn's "non-compete commitment and, consequently, not to pay the corresponding compensation equal to two years fixed and variable compensation."
Ghosn has been detained in Tokyo since November. He has been charged with falsifying financial reports in under-reporting compensation and breach of trust in having Nissan Motor Co. shoulder investment losses and paying a Saudi businessman.
Renault also canceled shares granted to Ghosn from 2015 to 2018, which were subject to his continued presence at Renault. The board noted "that such condition is not met, thereby triggering the loss of Mr. Ghosn's rights to the definitive acquisition of such shares."
A spokeswoman from Renault said some 450,000 shares will be canceled. At the current share price of around 57 euros, that is worth almost 26 million euros. The actual value of the compensation scheme would reflect the share price's variation over several years.
Renault said its board will decide next month on Ghosn's remuneration for the 2018 financial year.