The salary of Carlos Tavares, who previously served as the CEO of PSA, which included Peugeot, Citroen and Opel, and was appointed as the CEO of the new company after merging with PSA and FCA in 2021 and founding Stellantis, was paid to France in the election process. was also on the agenda.
According to the news of the French publication Le Monde, the details of the 19 million euro payment that the 63-year-old manager will receive in 2021, 1.9 million fixed salary, 7.5 million euros variable salary, 5.5 million euros for the first year of the 3-year performance plan, 1.7 million euros for the merger completion bonus. 2.3 million euros as a contribution to his future retirement.
When the 47 million euro share income and exceptional payments are added to this figure, Tavares’s total fee rises to 66 million euros. Most of this amount will depend on Tavares’ achievement of the targets and will not be paid before 2026-2028.
French President Emmanuel Macron, one of the names vying to be the new President of the country, and Marine Le Pen, one of the leaders of the opposition party, sharply criticized Tavares’ salary of 19 million euros in 2021 and other payments of 47 million euros.
Making statements to the French press, Emmanuel Macron, “We’re talking about astronomical sums here. We have to put a cap on these, it might work if we act at the European level.” said. Macron said that people experience purchasing power problems, difficulties and concerns in their lives and cannot see such amounts. “Otherwise society will blow up” warned.
Marine Le Pen also, regarding Tavares’ salary, “Of course it’s shocking. It’s even more shocking when there’s a CEO who puts the company in a difficult position and gets substantial sums.” He suggested that one way to offset such wages is to improve staff shares.
It is stated that Tavares’ salary, which is the target of criticism from the unions in France, is the highest salary ever received by a CEO in France.
MAJORITY OF SHAREHOLDERS AGAINST
According to the news of Reuters, in the statement made by Stellantis on the developments, it was emphasized that the positions of the politicians would not be commented on and that the group rose from the brink of bankruptcy to the leading position under the leadership of Tavares.
In addition, it was announced that 1.9 billion euros were paid to staff as well as shareholders, while Tavares’ salary was 90 percent variable depending on company performance and was lower than the wages of manufacturers such as General Motors (GM) and Ford.
On the other hand, it was revealed that more than 52 percent of Stellantis shareholders voted against Tavares’ payment package in a vote.
MADE A DIFFERENCE TO EUROPEAN AUTOMOTIVE MAKERS
To understand the size of Tavares’ salary, it is useful to look at the salaries of CEOs of other automotive manufacturers, especially GM and Ford, which Stellantis targets.
Ford’s CEO, Jim Farley, received a total of $1.7 million in salary, $16 million in stock awards, approximately $3.7 million in incentive plan payments, and approximately $1.4 million in other payments in 2021. All this shows that the Ford CEO’s total salary is $22.8 million (21.1 million euros).
Another US manufacturer, GM CEO, Marry Barra, although the salary received in 2021 has not yet been announced, the total salary received by the US CEO in 2020 increased by 10 percent compared to the previous year, giving him a total of $ 23.2 million ( 21.9 million euros) had been paid. This includes $2 million in salary, $3.8 million in bonuses, $3.8 million in stock options, $13.1 million in stocks and $616,000 in other payments.
Looking at Stellantis’ European competitors, it is noteworthy that Tavares’ salary is by far the highest among the CEOs of European-based automotive manufacturers.
Accordingly, Volkswagen Group CEO Herbert Diess received a salary of 9.9 million euros in 2021, BMW Group CEO Oliver Zipse received 8.75 million euros and Mercedes-Benz CEO Ola Källenius received a salary of 6.1 million euros. Renault, on the other hand, paid its CEO Luca de Meo a salary of 4.7 million euros in 2021.