Riding on the excellent results of the automotive group, the remuneration of the Portuguese general manager might reach 23.5 million euros, if Mr. Tavares achieves all the objectives set by the company. At the previous general meeting, in April 2022, more than half of the shareholders had voted once morest the remuneration policy of the new Franco-Italian-American group, born in 2021 from the merger of Peugeot-Citroën and Fiat-Chrysler.
Stellantis has since consulted them: they criticize a lack of transparency and certain bonuses not linked to results. Thursday, during the 2023 AGM in Amsterdam, executive compensation for 2022 was validated by nearly 80% of shareholders, in a purely advisory vote. The shareholders also validated, but with a very narrow majority (51%) the more than 51 million euros already paid to the American Richard Manley, former managing director of Fiat-Chrysler, in particular for his contribution to the merger. The president of Stellantis, the Italian-American John Elkann, whose family fund Exor is the largest shareholder of Stellantis ahead of the Peugeot family, will receive 5.8 million euros for 2022.
“We recognize that compensation is an important, sensitive and complex issue“Wan Ling Martello, a former Nestlé executive who chairs Stellantis’ compensation committee, said in a letter to shareholders. “But we also feel the strategic need to retain and attract world-class leaders, in a context of international competition”, pointed out Ms. Martello. The group pointed out that Mr. Tavares’ compensation was “aligned with that of its peers” (i.e. 24 European and American multinationals, from Boeing to Volvo) and that two billion euros have been redistributed to employees.
Bonuses linked to objectives
The shareholders have also largely validated the new remuneration conditions proposed by Stellantis: the group has slightly amended and clarified them taking into account certain criticisms. Share bonuses (which are on top of the fixed salary) will only be distributed to the group’s 1,600 key executives, including Mr Tavares, if they meet performance targets.
“This largely positive vote from all our shareholders, founding families included (…) reflects an adherence to meritocratic principles”, commented Mr. Elkann. The shareholders also validated the dividend proposed by the management, at 1.34 euros per share, as well as the arrival on the board of directors of Benoît Ribadeau-Dumas. This former Thales, close to the former Prime Minister Édouard Philippe, replaces Andrea Agnelli. This cousin of John Elkann, who represented Exor, resigned in January under the pressure of a judicial investigation, relating to possible accounting fraud at Juventus of Turin, which he chaired.
365 times the average salary
In detail, Carlos Tavares has already received for last year 14.9 million euros in salaries, bonuses and retirement, or, according to the management of the group, 2.1 million euros less than the last year. In addition to these 14.9 million euros, he might thus receive actions by 2026, the amount of which will be fixed according to the achievement of his objectives, financial, commercial or technological. His total compensation might thus reach nearly 23.5 million for the year 2022. He would thus receive every day of the year the average annual salary of a group employee, 64,328 euros according to Stellantis.
In addition to bonuses linked to the rise in Stellantis shares or the drop in CO₂ emissions, Mr. Tavares might in particular be entitled to a “transformation” bonus of 25 million euros in 2025, if the group achieves objectives. linked to the electric revolution in the automotive market.
