Stellantis shareholders are called upon to speak at a general meeting on Thursday on the compensation of Carlos Tavares and other executives of the automotive group, which they deemed too high and not clear enough in 2022. Riding on the group's excellent results car, the remuneration of the Portuguese general manager could reach 23.5 million euros, if Carlos Tavares achieves all the objectives set by the company.
Last year, during the previous general meeting, in April 2022, more than half of the shareholders had voted against the remuneration policy of the new Franco-Italian-American group, born in 2021 from the merger of Peugeot-Citroën and Fiat. -Chrysler.
Stellantis has since consulted them: they criticize a lack of transparency and certain bonuses not linked to results.
Thursday, during the 2023 GA, shareholders must express their views on executive compensation for 2022, even if their vote remains purely advisory.
The president of Stellantis, the Italian-American John Elkann, whose family fund Exor is the main shareholder of Stellantis, will receive for his part 5.8 million euros for 2022. The shareholders will also express themselves on the most of 51 million euros paid to the American Richard Manley, former managing director of Fiat-Chrysler, in particular for his contribution to the merger.
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Compensation aligned “with its peers”
"
We recognize that compensation is an important, sensitive and complex issue
," said in a letter to shareholders Wan Ling Martello, a former Nestlé executive who chairs Stellantis' compensation committee.
"
But we also feel the strategic need to retain and attract world-class leaders, in a context of global competition
," said Wan Ling Martello.
The group stresses that the remuneration of Carlos Tavares is “
aligned with that of his peers
”, that is to say 24 European and American multinationals, from Boeing to Volvo.
The shareholder advisory companies remain divided on these remunerations: ISS proposes to vote for while Glass Lewis encourages them to vote against, judging them excessive compared to other European bosses, and asking for a new effort of transparency.
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Linked to results
Taking into account some criticisms, Stellantis has decided to offer slightly amended and clarified remuneration conditions.
According to this proposal submitted to the vote of shareholders on Thursday, the bonuses in shares (which are added to the fixed salary) will only be distributed to the 1,600 main managers of the group, including Carlos Tavares, if they achieve performance objectives.
Shareholders must also validate the dividend proposed by management, at 1.34 euros per share, as well as the arrival on the board of directors of Benoît Ribadeau-Dumas.
This former Thales, and close to the former Prime Minister Edouard Philippe, replaces Andrea Agnelli.
The cousin of John Elkann, who represented Exor, resigned in January under pressure from a judicial inquiry into possible accounting fraud at Juventus Turin, which he chaired.
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365 average salaries
In detail, Carlos Tavares has already received for last year 14.9 million euros in wages, bonuses and retirement, or, according to the management of the group, 2.1 million euros less than the last year.
In addition to these 14.9 million euros, he could thus receive shares by 2026, the amount of which will be fixed according to the achievement of his objectives, financial, commercial or technological.
His total compensation could thus reach nearly 23.5 million for the year 2022. He would thus receive every day of the year the average annual salary of an employee of the group, 64,328 euros according to Stellantis.
In addition to bonuses linked to the rise in Stellantis shares or the reduction in CO2 emissions, Carlos Tavares could in particular be entitled to a "
transformation
" bonus of 25 million euros in 2025, if the group achieves objectives linked to the electric revolution of the automobile market.
