Alcatel-Lucent's board has decided to halve the departure package for former chief executive Michel Combes to about 7 million euros ($7.91 million) after the payout sparked an outcry in France, Le Monde newspaper reported.
Combes has since taken up new jobs as chief operating officer of telecoms networks operator Altice and chairman of its French subsidiary Numericable.
The decision by the board of Alcatel-Lucent, taken at a meeting on Thursday, follows recommendations from the French corporate governance oversight body.
Alcatel-Lucent said earlier this week that it had received the advice but would not give details. The company declined to comment on the Le Monde report on Friday.
French Economy Minister Emmanuel Macron last week described Combes' departure from Alcatel-Lucent before the finalisation of the takeover by Nokia, set to close by mid-2016, as "shocking" and "bad corporate behaviour."
France's AMF financial regulator also said last week that it was investigating whether the package respected governance rules.
Combes has defended his package, saying he would receive a significant sum as he had agreed to maximise the variable part of his pay to reflect the risk of failure.
He has argued that he had saved the company and created value for shareholders. Alcatel's share price has risen from less than 1 euro before he took over on April 1, 2013, to trade mostly between 3 and 4 euros this year.
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