"I have decided to give up the current provisions of my pension rights", Varin said at a press conference in the PSA headquarters.
Anger over what was widely seen as an example of unacceptable executive largess spanned the political spectrum, against a background of record unemployment and many workers being obliged to accept wage freezes to retain their jobs.
The 61-year-old Varin took charge of Peugeot in 2009. His stint has seen the company mired in economic woes amid falling sales and Peugeot is in the throes of a radical restructuring involving deep job cuts and the closure of a factory.