France's small shareholders slam Alcatel CEO payoff

PARIS (Reuters) - France's small shareholders slammed a 6 million euro payoff due to Patricia Russo, Chief Executive of loss-making Alcatel-Lucent, after 20 months running the world's No. 1 provider of fixed-line telecoms equipment.

Didier Cornadeau, president of French small shareholder association APPAC, said the payoff was excessive.

"It's another scandal. It's much too much...especially given the damage she has done," he said.

Alcatel-Lucent shares have lost more than 60 percent since Russo took the job and were up 2.1 percent at 3.91 euros by 6:43 a.m. EDT on Tuesday.

The departure of Russo and Chairman Serge Tchuruk is an apparent effort to draw a line under months of profit warnings.

Alcatel-Lucent defended Russo's compensation.

"It was passed by the annual general meeting in 2007 and is in line with market practice," an Alcatel spokesman said.

The timing of Russo's departure means she will not be forced to accept reduced terms under a "golden parachute" adopted by shareholders in May this year. She would only have become eligible for the new payment from January 1.

Tchuruk will step down in October, the company said.