Carrefour's shareholders have accepted to raise the CEO age barrier from 65 to 70 years old, meaning CEO Georges Plassat can stay on for another 5 years. He immediately thanked the shareholders with some big news.
2.66 million euro in yearly wages
Carrefour's general assembly of shareholders had given its thumbs up to allow Georges Plassat to remain as its CEO. Normally, he would have had to resign his position in the spring of 2015, when he turned 65, as the articles of association state.
Plassat has put Carrefour back on track regarding growth, with the recent quarter the best in the past two years and that has moved the shareholders to accept the proposal to bump up the age restriction from 65 to 70 years old. That will allow the 'savior' to add another 5 years.
His wages have also been approved in the same meeting. His fixed wages are worth 1.12 million euro, but he can reach 2.66 million euro if his variable wage package hits top marks.
Separate real estate association
Plassat immediately announced something new to all shareholders, because Carrefour will create a new real estate association, called Carmila, tomorrow. The goal is to manage its 172 shopping centres through Carmila.
The new firm - which will included the 127 centres (in France, Spain and Italy) it had purchased from Klépierre at the beginning of the year - will be worth 2.7 billion euro. Carrefour will own 42 % of Carmila's shares, with the rest spread over several institutional investors (among which one of Carrefour's largest shareholders, investment fund Colony).
Carrefour sold the majority of those stores between 2000 and 2002, after it had fused with Promodès. The buyer at that time was Klépierre and Carrefour felt forced to sell to improve its debt, which is why some people questioned the CEO's purchase earlier this year.
Plassat however believes that Carrefour "has to get a hold of those commercial centres, as it is important our hypermarkets are located in a commercially attractive environment, surrounded by stores that complement what we do." According to Plassat, Carrefour "only had to use a small amount of cash, some 200 million euro" to get the deal done. The remainder of the funds were gathered through debt.