“Indecent”, “revolting”… the union reactions in France were not long in coming when the potential remuneration which will be awarded for the year 2021 to Carlos Tavares, the general manager of the car manufacturer Stellantis – born from the merger, was revealed at the beginning of 2021, between PSA and Fiat-Chrysler –, during the general meeting of the group, which is held on April 13. The firm Phitrust, a portfolio management company with an ethical dimension which wishes to change the environmental, social and governance practices of listed groups, estimates the total of what will be awarded to Mr. Tavares at 66 million euros, including his long-term compensation.
In detail, the 63-year-old manager will have received 19 million euros for the year 2021 alone (1.9 million fixed + 7.5 million variable + 5.5 million for the first year of a three-year performance plan + 1.7 million in merger completion bonus + 2.3 million in contribution to his future retirement), to which are added 47 million in the allocation of free shares and exceptional compensation based on Mr. Tavares’ ability to transform Stellantis, with much of it untouched until 2026-2028.
” Meritocracy “
Phitrust, which qualifies this remuneration as“indecent” and judges it socially problematic, recalls that this is the largest salary allocation to a boss in France and wishes to challenge the shareholders, including the French State through Bpifrance, during the general meeting.
“Phitrust suggests that these 66 million go directly to the account of Carlos Tavares, it is completely false”, complains a close friend of the boss
In a statement released on the same April 13, CFDT Stellantis said that “Mr. Tavares’ remuneration is not legitimate”. “It is urgent that our politicians finally take real action on the salary caps of our leaderscontinues its central delegate, Christine Virassamy. These situations lead, alas, to extreme positions taken by citizens during elections. “This figure of 66 million is unacceptableadds Jean-Pierre Mercier, for the CGT Stellantis, when we see that Stellantis is cutting 2,600 jobs in France and that the salary increase granted is only 2.8%. »
On the side of Stellantis, a spokesperson states that “Compensation for the Chief Executive Officer is awarded solely on the basis of meritocracy. The advice of Stellantis and John Elkann [le président du conseil d’administration] are perfectly aligned with this principle”. In the group, it is recalled that Stellantis is the third most profitable manufacturer (13 million euros in profits in 2021), after Mercedes and Tesla, and that most of this remuneration will not be affected by Mr. Tavares before several years.
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