Jean-Marc Sovignet of the French Confederation of Management and the General Confederation of Executives (CFE-CGC) has written to Pierre Mosovici, the French Minister for Economics and Finance and Arnaud Montebourg, the French Minister for Productivity Recovery, explaining that, while ST’s performance has declined over the years, Bozotti’s compensation has increased.
Bozotti took over as CEO in 2005. Sovignet writes: “Over the period 2005-2013, STMicroelectronics fell from 5th to 10th in the world, with a turnover decrease of $ 8.8 billion to $ 8.0 billion, a decrease of 10%. In the same time, the remuneration of Mr. Carlo Bozotti rose from $ 1,470,000 to $ 3,400,000, an increase of 231%.”
“The year 2013 ended with a loss of $500 million and a turnover down 4.8% over the year 2012. For the same period, in 2012, 2013, the total annual remuneration of the CEO of the company, Mr. Bozotti, rose from $ 2.5 million to $ 3.4 million, plus $ 900,000
paid by STMicroelectronics has a supplementary pension scheme managed by an independent Swiss foundation.”
CFE-CGC calls on the French ministers to use their golden share in ST to stop this practice of increasing Bozotti’s compensation while ST’s performance gets worse.
“As representative of the state shareholder of STMicroelectronics, you have the power to oppose the decisions of the Board,” writes Sovignet, “as such, we ask you to put an end to the escalating compensation of our non-justified under-performance of the company leaders. We also find shocking amounts set aside for complementary pensions of our leaders and we ask you as a shareholder not to accept what appears to us to be golden parachutes.”
The text of the letter can be read here.