“Shocked” by Tavares’ (Stellantis) “astronomical” pay, Macron wants to cap big salaries

When asked about the compensation that the CEO of the automotive group Stellantis, Carlos Tavares, will receive for the year 2021, Emmanuel Macron, Guest of “Presidential Mornings” this Friday, April 15, on FranceInfo, responded that he found it “shocking and excessive” and then put forward an argument on the subject of social justice and sharing of added value, while highlighting the need for a Ceiling saw high salaries.

The journalist Marc Fauvelle asked the President of the Republic and candidate for his re-election on April 24:

“On the compensation of Carlos Tavares, head of Stellantis, 19 million euros planned for 2021… The shareholders voted no in a general meeting, but they do not have the power to block this compensation… Is that true figure shocked you?

“Of course, and I think we’re all in the same situation: we either tell ourselves ‘why not me’ or we tell ourselves it’s inadmissible… and finally it’s shocking, it’s overkill…” replied Emmanuel Macron.

Marc Fauvelle immediately responded with a question aimed at getting the candidate to respond to his program: “So what are you doing? “

Emmanuel Macron began by defining the limits of political power in the face of commercial law:

“It’s quite simple, the state is not technically a shareholder in the company and yes, the Public Investment Bank has also spoken out against this remuneration, but the great difficulty of all these outraged issues is that they have to be tackled in Europe, because Stellantis has its board and management in the Netherlands.

The risk that “society will eventually explode”

Finally, after the performance of 2021 was exceptional, the general manager Carlos Tavares should receive a total of 19 million euros for the financial year. As a reminder, in 2021 Carlos Tavares’ total compensation will be €66 million. In detail, it consists of a fixed salary of 19 million euros, plus bonus payments, the free share plan and long-term remuneration.

Wanting to be a driving force in leading this fight to prevent “abusive” remuneration, the President of the Republic stated on the one hand that this had to be addressed at European level in order to be effective – which would take time – and insisted that Risk of a social explosion if the topic was not discussed at all:

“We have to set upper limits and have a policy for our Europe that makes things acceptable, otherwise society will eventually explode. People can’t have purchasing power problems (…) and see these sums.”he explained.

“What we can do, as we did on the minimum tax and the fight against tax evasion, is that we convince our European partners to carry out a reform that will make it possible to monitor the remuneration of our directors.”he specified.

In France, in companies, a pact on the sharing of added value

Emmanuel Macron also wants to “change the pact at the Franco-French level in order to share added value in the company”.

“If we pay shareholders, we must pay employees through profit-sharing – Participation and / or through the purchasing power bonus,” he added, citing a measure of his project aimed at increasing the Macron bonus to 6,000 euros.

Presidential challenger Marine Le Pen also responded to BFMTV and suggested “bringing in employees as shareholders”:

“Of course it’s shocking It’s even more shocking when it’s executives who have gotten their company into trouble., fellow finalist Marine Le Pen responded to BFMTV. “But I believe that one of the means of mitigating this disproportionate level of economic activity can be precisely to attract employees as shareholders,” added the RN candidate.

At a virtual general meeting, a majority of Stellantis shareholders voted – in an advisory capacity – against the manufacturer’s salary policy, which rewards its managers based on performance. They had approved it in early 2021 when the group was formed from the merger of Peugeot-Citroën-Opel (PSA) and Fiat-Chrysler (FCA).

(with AFP and Reuters)