Shareholders question Carlos Tavares’ compensation
Stellantis, the Franco-Italian-American automotive giant, is holding its general meeting. Shareholders must speak out on the remuneration of Carlos Tavares, the group’s chief executive. The latter had expressed their dissatisfaction last year, judging the remuneration too high and lacking in transparency. If Tavares achieves all the targets set by the company, his remuneration might climb to 23.5 million euros.
The group defends itself by stressing that the remuneration of its boss corresponds with that of its peers in other large European and American companies. However, shareholder advisory firms remain divided on this issue. Some recommend voting for, while others encourage voting once morest. Indeed, they also consider the remuneration excessive and demand more transparency.
Changes and clarifications to the remuneration system
In response to criticism, Stellantis is offering slightly amended and clarified compensation terms. The bonuses in shares will be distributed to the 1,600 main leaders of the group, including Tavares, only if they achieve performance objectives. Shareholders must also validate the proposed dividend at 1.34 euro per share and some board changes.
In 2022, Carlos Tavares received 14.9 million euros in salary. It might also receive shares by 2026, the amount of which will depend on the achievement of its financial, commercial or technological objectives. Thus, his total compensation for 2022 might reach nearly 23.5 million euros. This is equivalent to earning the average annual salary of a Stellantis employee every day, which is 64,328 euros. Among the performance-related bonuses, the boss of the firm might receive a “transformation” bonus of 25 million euros in 2025 if the group achieves objectives related to the electric revolution of the automotive market.
