PARIS/MILAN (Reuters) – Stellantis shareholders this time approved by a large majority the compensation package proposed for 2022 for the management of the automotive group, including that of chief executive Carlos Tavares who had sparked controversy a year earlier.
The salary of Carlos Tavares, one of the highest executives in the global automotive sector, rose last year to 23.5 million euros, compared to 19.2 million in 2021, if we includes elements of long-term compensation which may not be paid to him in full.
Excluding these items, it was down 14% to 14.9 million euros.
The envelope was validated at 80.4% by the shareholders convened for the general meeting of the world’s third largest car manufacturer, meeting in Amsterdam where it has its headquarters, and the new compensation policy for the CEO for the years to come has also was approved, at 93.45%.
Always a sensitive subject in France, especially in the current context of pension reform and high inflation, the level of Carlos Tavares’ salary this time did not bother the group’s shareholders.
“On the modification of the remuneration policy, it must be recognized that Stellantis listened to the shareholders,” Charles Pinel, managing director of Proxinvest, told Reuters.
“While it’s not perfect – the pay is still going to be high – the alignment with performance will be strengthened,” he added, noting that if rejected, the previous policy would be. remained in effect.
This led the general meeting to vote 52% against the proposed compensation for 2021, against a backdrop of criticism from political and union leaders, particularly in France, then in the midst of the presidential campaign.
The advisory vote had not prevented the payment of salaries and bonuses to the directors of the constructor resulting from the merger of PSA and Fiat Chrysler, but Stellantis had undertaken to take them into account.
The group, which has been chaining record margins for several years, added to maintain a high tariff capacity in North America, which weighs for 60% in its adjusted operating profit. Tesla lowered its prices in the United States this month for the fifth time this year.
“Our compensation report reflects our belief in rewarding performance based on the achievement of ambitious goals, both financial and extra-financial,” said Stellantis Chairman John Elkann.
(Report Gilles Guillaume and Giulio Piovaccari, with Jean-Stéphane Brosse, edited by Kate Entringer and Blandine Hénault)
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