Stellantis, Tavares’ salary infuriates investors
The countdown has started at Stellantis: on April 16, during the general meeting of the automotive giant, shareholders will be asked to express their opinion regarding the remuneration for 2023 of CEO Carlos Tavares, on which many seem to be in considerable disagreement.
At the end of February, the board of directors had proposed a ceiling of 36.5 million euros for the Portuguese’s salary, with a 56% increase every year. The figure was motivated by the “extraordinary performance of the automotive sector in 2023” under the manager’s leadership, characterized by a record net profit recorded at 18.6 billion euros.
The compensation proposal would include one fixed salary of 2 million euros, a performance bonus of 11.4 million, stock bonuses of 13 million and one Exceptional bonus of 10 million related to the “transformation” of the group, born from the merger between PSA and Fiat Chrysler in 2021. However, ten days before the vote, three consultancy agencies advised shareholders to vote “against” this proposal, raising doubts on the significant increase in Tavares’ salary, especially at a time when the company is carrying out large-scale layoffs.
The agencies also believe the exceptional bonus of ten million euros was not adequately justified, arguing that rewarded actions are an integral part of a manager’s responsibilities. In short, the usual media pillory for the salaries of corporate leaders.
The 36 million euros from the number one of Stellantis amazes even the most tolerant observers in terms of company performance, especially because the figure is in stark contrast with the sense of responsibility that would be expected in the management of top management salaries. Yet, it seems that nothing can stop Carlos Tavares from collecting this sum, especially considering the previous year’s record profits and the 10% distribution to the group’s employees.