Philippe Varin, whilst not about to retire, has a €21 million pension pot put to one side that would ensure payment of €310,000 per year after taxes and social security contributions.
Now the car boss has said he will leave it up to the company board to come to a decision on what an 'appropriate' arrangement would be for his pension provision.
The questions come at a time when PSA Peugeot Citroen faces tumbling car sales, job losses and was rescued last year by government guarantees for its financing and credit arm.
The company also posted a record loss of €5 billion.
Finance minister Pierre Moscovici said more transparency was needed on the pension arrangements, while union representatives are shocked at the package available to Philippe Varin (pictured) at a time when the Peugeot plant at Aulnay-Sous-Bois is set to be closed.
PSA Peugeot Citroen were moved to issue a statement about Philippe Varin's pension deal explaining that it had been agreed and approved by shareholders.
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