Outgoing PSA Peugeot Citroen chief gives up $28.5 million pension pot

PARIS – The outgoing CEO of struggling French carmaker PSA Peugeot Citroen said he will give up his 21 million-euro ($28.5 million) pension pot after criticism from France’s Socialist government.

Philippe Varin announced his decision in a news conference Wednesday a few hours after Finance Minister Pierre Moscovici called the pension sum “inappropriate.”

PSA Peugeot Citroen is the midst of deep job cuts and a factory closure, and experienced falling sales during Varin’s four years as chief executive.

Varin’s private pension pot translates as 310,000 euros ($421,265) per year after taxes, according to PSA. The French government has stakes in the company.

Varin’s departure was announced Monday by PSA. He’ll be replaced next year by a former executive at rival automaker Renault, Carlos Tavares.