Stellantis Investors Reject Salary Proposal for Company CEO Carlos Tavares!

A majority of Stellantis shareholders have voted to reject a proposed 19 million euro ($20.6 million) salary package for the company’s CEO, Carlos Tavares, and the company’s compensation report for its other leaders. More than 52% of investors voted against the pay on Wednesday at its first “annual general meeting” after some (including some French investors) questioned the excessive payouts offered to Stellantis management.

Carlos Tavares, CEO of Stellantis, driving the GranTurismo Folgore. (Maserati).

In February, Stellantis in its annual report said Tavares’ total compensation in 2021 was €19.2 million ($20.8 million), of which €16.8 million ($18.2 million dollars) were direct compensation. A minority shareholder in Stellantis, Phitrust estimated the value of Tavares’ total compensation awarded in 2021 at around 66 million euros ($71 million). According to several sources, this would have made Tavares the highest paid CEO in the European automotive industry.

Stellantis CEO Carlos Tavares at CES 2022. (Stellantis).

Phitrust released an official statement on April 8, stating the following…

“We voted against the company’s 2021 compensation report, which sets Mr. Carlos Tavares’ compensation for 2021 at 19 million euros, with the annual bonus alone amounting to 7.5 million euros , or 3.8 times base salary. In addition, it is specified in the LTI plans that the Chief Executive Officer was granted free share plans in 2021, the fair book value of which on the grant date was €32 million. Added to this is a new long-term compensation payable in cash for a target amount of 25 million euros (with a maximum of 50 million euros).

Calculated according to the methodology of the Autorité des Marchés Financiers (AMF) or the AFEP-MEDEF Code, on the basis of the IFRS fair value at the grant date in force in all the major French groups, the total amount of compensation of the CEO of Stellantis granted for 2021 would amount to 66 million euros.

Stellantis CEO Carlos Tavares and the Chrysler Airflow. (Stellantis).

A spokesperson for Stellantis disputed the €66 million amount claimed by Phitrust as “false”.

Automotive News Europe reported that at a press conference on Tuesday, a French government spokesperson said “these are not normal numbers” and then referred to the need for regulation on the matter in Europe. . France, through investment bank Bpifrance, has a 6.15% stake in Stellantis and even has a member on the automaker’s board.

Shareholders have increased their scrutiny of executive compensation packages ahead of investor meetings.

In 2021, the fourth-largest carmaker almost tripled its net profit to 13.4 billion euros, while total revenue improved by 14% to 152 billion euros. The automaker, like others, has benefited from cost-cutting efforts and high prices due to strong demand for reduced dealer inventory resulting from a global shortage of semiconductors and several shortages of the supply chain.