“Indecent”, “outrageous”… union reactions in France were not long in coming when, in early 2021, the possible compensation that Carlos Tavares, the General Manager of the automaker Stellantis, the result of the merger PSA and Fiat-Chrysler, will be awarded for the year 2021 became known – , during the group’s general assembly, which will take place on April 13. Phitrust, a portfolio management company with an ethical dimension that seeks to change the environmental, social and governance practices of publicly traded groups, estimates the total amount awarded to Mr. Tavares at €66 million, including his long-term compensation.
In detail, the 63-year-old manager is said to have received 19 million euros for 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 merger completion bonus). +2.3 million as a contribution towards his future retirement), to which will be added 47 million for bonus share allocations and an exceptional compensation based on Mr. Tavares’ ability to convert Stellantis, much of which will remain unaffected through 2026-2028 .
Phitrust, which qualifies this remuneration as“indecent” and considers it socially problematic, recalling that this is the largest salary award to a boss in France and wanting to challenge shareholders, including the French State through Bpifrance, during the AGM.
“Phitrust is suggesting that this 66 million goes straight to Carlos Tavares’ account, that’s completely wrong,” laments a close friend of the boss
In a statement released on April 13, CFDT Stellantis said so ‘Mr Tavares’ compensation is not legitimate’. “There is an urgent need for our politicians to finally take real action against the salary caps on our executivescontinues its central delegate, Christine Virassamy. Unfortunately, these situations lead to extreme positions of the citizens during the elections. “This figure of 66 million is unacceptableadds Jean-Pierre Mercier for the CGT Stellantis, when we see Stellantis cut 2,600 jobs in France and the salary increase granted is only 2.8%. »
A spokesman explains this on the Stellantis website “The CEO’s compensation is granted solely on the basis of merit. The advice of Stellantis and John Elkann [le président du conseil d’administration] are perfectly aligned with this principle.” The group recalls that Stellantis is the third most profitable manufacturer after Mercedes and Tesla (13 million euros profit in 2021) and that most of this remuneration is not influenced by Mr. Tavares a few years ago.
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