MILAN (Reuters) – Consultancy Institutional Shareholder Services (ISS) is recommending that Stellantis shareholders vote in favor of chief executive Carlos Tavares’ compensation after he cut his salary, a document seen shows Tuesday by Reuters.
This recommendation was made in a report communicated ahead of the general meeting of shareholders of the automotive group, which had rejected the level of remuneration of Carlos Tavares last year.
According to information provided this year by Stellantis, the managing director of the world’s third largest automotive group received a total of 14.9 million euros last year, a decrease of 14% compared to his remuneration in 2021.
ISS said in its report that Carlos Tavares’ compensation was in line with market practice, although the firm expressed concerns, including about a “lack of clarity on the main benefits” allocated to the chief executive and chairman. of Stellantis, John Elkann.
Shareholders are expected to vote on the new compensation grid at the meeting to be held on April 13 to approve last year’s results.
The shareholders of Stellantis had opposed in 2022 the compensation package proposed for the management of the group, including that of Carlos Tavares who had caused controversy in France, in the middle of the campaign for the presidential election.
This subject remains sensitive in France, now in the midst of a purchasing power and pension crisis, but Stellantis, which had promised to take into account the negative vote, sought to clarify this year the presentation of the elements of remuneration.
The group insisted in particular on the fact that Carlos Tavares would not receive again the exceptional bonus of 1.7 million euros linked to the PSA-FCA merger, which gave birth to Stellantis.
(Report Giulio Piovaccari, with Gilles Guillaume in Paris; French version Jean Terzian, edited by Bertrand Boucey)
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