Stellantis CEO Carlos Tavares Accepts His Controversial Salary Before Voting: ‘If You Think It’s Unacceptable, Get A Law’

Non-binding but closely watched vote: Stellantis shareholders meeting at a general meeting on Tuesday 16 April will have their say on the pay of the big industrial group’s CEO Carlos Tavares, sparking yet another controversy. According to the company’s annual financial report, the latter could receive 36.5 million euros by 2023, 23.5 million euros in 2022 and 19 million euros in 2021.

The increase in his salary is mainly related to the payment of a bonus of 10 million euros “transformation” of the group created in 2021 by the merger of PSA and Fiat-Chrysler. Mr. Tavares’ pay, 65, includes retirement pensions that will be paid out over the long term, but also bonuses given only if he hits targets by 2025, the final year of his current mandate at the helm of the manufacturer.

For the 2023 financial year, Mr. Tavares will initially receive €23.5 million. Paid mainly in shares, this remuneration also increases with the value of the group’s shares, which have almost doubled in the past three years. Unlike what would happen if Stellantis were headquartered in France, the shareholder vote will be purely advisory, with the company governed by Dutch law.

On a trip to the Tremer factory (Moselle) on Monday, Mr. Tavares picked up this paycheck. “The contractual dimension between me and the company as a footballer and a Formula 1 driver”. “Ninety percent of my salary comes from the results of the company. (…) So this proves that the company’s results are clearly not that bad.”– responded Mr. Tavares at the microphone of France Bleu Lorraine Nord, adding: “If you think this is unacceptable, make a law and change the law and I respect it. »

“Shocking and scandalous” for the CGT

With its 14 brands including Peugeot, Citroën, Fiat, Dodge and Opel, Stellantis on February 15 posted a new record profit of 18.6 billion euros for 2023, up 11% year-on-year. Its turnover is close to 190 billion euros.

Several investment advisory firms still recommended voting against this year, including US agency Glass Lewis, which issued “serious reservation”. “Compensation is excessive even in this context”ISS (for International Shareholder Services) was also informed in a note that the world consulted.

For its part, the General Confederation of Labor (CGT) of Stellantis criticized the salary. “Totally shocking and scandalous” equivalent to 100,000 euros per day, “An increase of almost 50% when most of us only had 3.7% and are struggling to make it through the month”. The major automotive group announced on February 15 that it will distribute almost 1.9 billion euros to its employees worldwide. In France it is at least 4,100 euros for the lowest salary. The group’s shareholders will receive around 7.7 billion euros for the 2023 financial year, between dividends and the share buyback program.

The remuneration of the Director General has already been criticized in 2022, in particular by the President of the Republic, Emmanuel Macron, who discussed it between two rounds of presidential elections. “shocking and overwhelming” quantity “Astronomical” his pay. Stellantis argues that this pay should be more comparable to multinational companies such as Boeing in the United States (Dave Calhoun, $33 million by 2023). The group actually makes most of its sales in Europe, but derives most of its profits from the American market.