Peugeot's outgoing chief executive officer (CEO), Philippe Varin (pictured), has faced calls to renounce part of his £258,000 pension. Mr Varin is set to receive the compensation when he steps down in January 2014.
The leader of the Union of Democrats and Independents, Jean-Louis Borloo, said the compensation to be awarded was excessive. He said that "It has been known for executives to give them up" and that "the important thing is to save PSA."
Further criticisms were mounted by the joint parliamentary chairman of the minority governing EELV who asserted that "this is too much," and "there's a whiff of indecency about it."
The loss-making car manufacturer is in the process of cutting 10,000 jobs as it attempts to recover from the effects of the recent slump in European car sales.
On Monday Peugeot announced that the former Renault number two, Carlos Tavares will succeed Varin as CEO 1 January.