Stellantis shareholders are called to express themselves today at a general meeting about the remuneration of Carlos Tavares and other executives of the automotive group, which they considered too high and unclear in 2022. Navigating on the excellent results of the automotive group, the remuneration of the CEO Portuguese could reach 23.5 million euros, if Carlos Tavares achieves all the goals set by the company.
Last year, during the previous general meeting, in April 2022, more than half of the shareholders had voted against the remuneration policy of the new French-Italian-American group, born in 2021 from the Peugeot-Citroën merger. and Fiat.-Chrysler. Since then, Stellantis has consulted them: they criticize the lack of transparency and certain bonuses not linked to the results.
Remuneration “aligned with that of their peers” according to the group
Today, during the 2023 AGM, shareholders must express their views on executive compensation for 2022, even if their vote remains purely advisory. Stellantis Chairman, Italian-American John Elkann, whose family fund Exor is Stellantis’ largest shareholder, will receive €5.8 million for his part by 2022. Shareholders will also weigh in on most of the €51 million euros paid to the American Richard Manley, former managing director of Fiat-Chrysler, in particular for his contribution to the merger. “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.
The group highlights that Carlos Tavares’ remuneration is “in line with that of his peers”, that is, 24 European and American multinationals, from Boeing to Volvo. Shareholder advisory firms remain divided on these remunerations: ISS proposes to vote for them while Glass Lewis encourages them to vote against, judging them excessive compared to other European employers, and calling for a new effort at transparency.
A dividend of 1.34 euros per share pending validation
Taking some criticism into account, Stellantis has decided to offer slightly modified and clarified remuneration conditions. According to this proposal submitted this Thursday to a vote by the shareholders, the bonuses in shares (which are added to the fixed salary) will only be distributed to the 1,600 main executives of the group, including Carlos Tavares, if they reach the performance objectives.
The shareholders will also have to validate the dividend proposed by the management, of 1.34 euros per share, as well as the arrival on the board of directors of Benoît Ribadeau-Dumas. This former Thales, and close to former Prime Minister Edouard Philippe, replaces Andrea Agnelli. John Elkann’s cousin, who represented Exor, resigned in January under pressure from a judicial investigation into possible accounting fraud at Juventus Turin, which he presided over.
A “transformation” premium of 25 million euros in 2025
In detail, Carlos Tavares has already received 14.9 million euros last year in salaries, bonuses and retirements, or, according to the group’s management, 2.1 million euros less than last year. In addition to these 14.9 million euros, he could thus receive shares until 2026, the amount of which will be set based on the achievement of his financial, commercial or technological objectives. His total compensation could thus reach almost 23.5 million euros by the year 2022. He would thus receive the average annual salary of a group employee every day of the year, 64,328 euros according to Stellantis.
In addition to the bonuses linked to the increase in Stellantis shares or the decrease in CO2 emissions, Carlos Tavares could be entitled, in particular, to a “transformation” bonus of 25 million euros in 2025, if the group reaches objectives linked to the electric revolution in the car market
Source: BFM TV
