shareholders say “no” to the remuneration of Carlos Tavares (19.1 million euros)

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After three days of controversy, Stellantis shareholders have said no to the salaries of the group’s leaders. 52.12% of the shareholders gathered at the General Meeting opposed the resolution on remuneration. Last year, the report on remuneration was validated with 87% of the votes.

A minority shareholder sets fire to the powder

The controversy over Stellantis’ compensation policy began on Monday when Phitrust, a minority shareholder in the Franco-Italian automotive group under Dutch law, estimated that the emoluments of Carlos Tavares, the general manager, represented 66 million euros. The management company has added the emoluments depending on the 2028 objectives (and if the share remains at least at its current level). According to Stellantis, these objectives have not yet been achieved, and will be staggered by 2028.

According to the group, Carlos Tavares’ fixed salary is 2 million euros. He also receives a variable part, including 7.5 million euros linked to his performance, 2.4 million for his retirement. He also earns 1.7 million for successfully completing the merger of PSA and Fiat Chrysler, which became Stellantis, a non-recurring bonus. In addition, there are free shares based on financial and environmental objectives but whose expiry is set in 2026, and amounting to 5.6 million euros. All in all, Stellantis estimates Carlos Tavares’ compensation at 19.1 million euros in 2021.

According to the rule, rejected in the General Assembly, John Elkann (president of the group, and president of Exor, first shareholder of Stellantis) will receive a total of 7.8 million euros, and the financial director of the group, the American Richard Palmer, 14.8 million. The heirs of the former general manager of Fiat-Chrysler Sergio Marchionne, who died in 2018, will also receive 26 million euros.

Stellantis recalled that on compensation issues, the opinion of the General Meeting was advisory under Dutch law. The group will indicate later how it decides to take into account the decision of the shareholders.

The French Minister of Economy and Finance, Bruno Le Maire, on Wednesday judged “excessive” the remuneration of Carlos Tavares.

“This remuneration is excessive”, he said on France 5 during the program ‘C à vous’.

“This salary is excessive. It provokes reactions from employees. It must lead us to reflect on this question of the salaries of managers in relation to company employees, but do so at European level because otherwise you will lose all the good bosses who get results”, added the Minister.