One retired French man managed to prompt criticism from lawmakers and cause the outrage of employees and unions at the generous pension award. Besides, France’s government did not overlook the record pension payout to the former CEO of the state-subsidized car maker Peugeot Citroen. During the farewell event, the company’s board announced that the outgoing CEO would be paid off the handshake worth €21 million or $28.5 million. As a result, the Labor Department officials and union leaders queued up to criticize him. Policymakers bristled at the fact that Varin will be stepping down three years before the end of his current contract. Moreover, Peugeot has seen its fortunes falter since Philippe Varin took the helm in 2009. "Given PSA's difficulties and given that the state has already guaranteed (finance arm) Banque PSA Finance for 7 billion euros, we have asked for some very thorough explanations from PSA on the financial arrangements of his retirement," Industry Minister Arnaud Montebourg said. "Things must be reconsidered," Finance Minister Pierre Moscovici told reporters. The most of policymakers and employees rally behind this opinion. It is worthy of note that recently the carmaker has cut more than 10,000 jobs. In late July, after getting approval by the European Commission, France’s government confirmed and allocated €7 billion as a rescue plan since the company was struggling to recover from a six-year European market slump. To sum up, to leave with a pension of this magnitude when one has failed as the head of Peugeot is considered as simply inappropriate. To subdue the outcry, the company spokesman stated that Varin would receive no severance pay when he leaves the group.
