After three days of controversy, Stellantis’ shareholders have said no to the salaries of the group’s leaders. 52.12% of the shareholders present at the General Meeting opposed the resolution on the fees. Last year, the report on remuneration was validated with 87% of the vote.
A minority shareholder sets the powder on fire
The controversy over Stellantis’ remuneration policy started on Monday when Phitrust, a minority shareholder of the French-Italian automotive group under Dutch law, estimated that the emoluments of Carlos Tavares, its general manager, amounted to 66 million euros. The management company has added the emoluments depending on the targets for 2028 (and if the share remains at least at the current level). According to Stellantis, these targets have not yet been achieved and will be spread in 2028.
The fixed salary of Carlos Tavares is 2 million euros, according to the group. He also receives a variable part, of which 7.5 million euros is linked to his performance, 2.4 million for his pension. He also earns $1.7 million for successfully completing the merger of PSA and Fiat Chrysler, which became Stellantis, a one-time bonus. In addition, there are free shares based on financial and environmental targets but with an expiry date in 2026, and for an amount of 5.6 million euros. All in all, Stellantis estimates the compensation of Carlos Tavares in 2021 at 19.1 million euros.
Under the rule, rejected in the General Meeting, John Elkann (chairman of the group, and chairman of Exor, first shareholder of Stellantis) will receive a total of EUR 7.8 million, and the group’s financial director, American Richard Palmer will receive , 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.
Stellaantis recalled that the advice of the General Meeting with regard to remuneration issues was advisory under Dutch law. The group will later indicate how it decides to take the decision of the shareholders into account.
French Economy and Finance Minister Bruno Le Maire on Wednesday found Carlos Tavares’ compensation “excessive”.
“This fee is excessive,” he said on France 5 during the ‘C à vous’ program.
“This salary is excessive. It provokes reactions from employees. It should make us think about this issue of managers’ salaries in relation to company employees, but do it at European level, otherwise you will lose all the good bosses who achieve results,” the minister added.
