The general assembly of Stellantis voted on Tuesday in favor of the remuneration of Carlos Tavares. 70% of shareholders voted in favor of the package for the manufacturer’s CEO, which could reach a maximum of 36.5 million euros. If you look closer, investors tended to vote against it, but that was not enough given the weight of the founding families.
In fact, contrary to appearances, Carlos Tavares did not obtain the support of minority shareholders. His remuneration certainly obtained 70% of the favorable votes, but two thirds were contributed by Agnelli and Peugeot. The two founding families of Fiat and Peugeot represent a third of the votes in Stellantis.
But since not all shareholders vote, their power is much greater and is actually almost half at the general meeting. Even the presence of Bpifrance does not change the balance of power, despite its 10% of the votes. The public agency abstained from Tuesday’s vote.
The founding families even more powerful
According to our calculations, the majority of minority shareholders voted against Carlos Tavares’ remuneration: 800 in favor, 600 against. But this was not enough given the weight of the families. Especially since this year, Agnelli and Peugeot also benefit from double voting rights because they have been shareholders for more than three years. Which explains the vote differential compared to 2022 (52% compared to two years ago).
A policy that in theory aims to reward long-term investors. But in practice, it further locks the governance of Stellantis into the hands of the two families.
Although advisory, the vote of the automaker’s shareholders was closely examined after criticism of the manager’s salary, which increased by 56% compared to 2022. Three consulting firms advised them not to validate this remuneration. The day before, Carlos Tavares had responded to his detractors by invoking “the contractual dimension between the company and (him).”
“As for a footballer and a Formula 1 driver, there is a contract,” he explained on Monday, in response to a question from BFM Business.
This remuneration includes a bonus of ten million euros linked to the transformation of the group created in 2021 from the merger of PSA and Fiat-Chrysler, as well as bonuses granted only if certain objectives are met between now and 2025, the last year of its current mandate. Initially, Carlos Tavares will receive 23.5 million euros by 2023.
Source: BFM TV
