Stellantis CEO Hefty Compensation Package Sparks Controversy

Investors Approve $39 Million Package, Amid Job Cuts...

Despite Stellantis’ recent efforts to trim its workforce and navigate the challenging transition to electric vehicles (EVs), CEO Carlos Tavares finds himself in the spotlight once again, this time over his eye-popping €36.5 million ($39 million) compensation package. The substantial increase in Tavares’ pay, up nearly 60% from the previous year, has drawn criticism from shareholder advisory firms and raised eyebrows among investors.

Stellantis CEO, Carlos Tavares with the Alfa Romeo Tonale Veloce Q4 PHEV. (Stellantis).

At the heart of the controversy is a new €10 million ($10.7 million) incentive award tied to meeting electrification and software goals, which some argue is excessive given the company’s cost-cutting measures and tough savings targets. Advisory firms Glass Lewis and Proxinvest have urged investors to vote against approving the package, citing concerns over the disconnect between executive pay and the company’s workforce reductions.

Glass Lewis, in particular, has taken issue with the additional incentive award, questioning its necessity and alignment with market standards. “We note that such a bonus is out of step with market practice,” the firm stated in a report. They also raised doubts about the performance targets used by Stellantis to justify the hefty compensation package, suggesting they may not be sufficiently challenging for executives.

Stellantis CEO Carlos Tavares behind the wheel of the GranTurismo Folgore. (Stellantis).

In response to the criticism, Tavares defended his compensation, likening it to contracts for professional athletes. “There’s a contract between the company and myself, just as there are contracts for soccer players and for Formula 1 drivers,” Tavares remarked. He emphasized that a significant portion of his salary is tied to the company’s performance, indicating confidence in Stellantis’ trajectory.

However, the optics of Tavares’ soaring paycheck amid layoffs and production shifts have sparked outrage among workers and raised concerns about the company’s reputation. Thousands of Italian workers have protested near Stellantis’ base in northern Italy, voicing opposition to plans to move EV production elsewhere and reduce the workforce. Similarly, in the U.S. and France, layoffs have prompted backlash from local unions and workers, who decry increased workloads and inadequate conditions in certain plants.

Source: Automotive News

Robert S. Miller

Robert S. Miller is a diehard Mopar enthusiast who lives and breathes all that is Mopar. The Michigander is not only the Editor for MoparInsiders.com, 5thGenRams.com, and HDRams.com but an automotive photographer. He is an avid fan of offshore powerboat racing, which he travels the country to take part in.

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unbelievable push to electrification that is totally unsustainable, NOBODY WANTS THEM, NOBODY INCLUDING THE DEALERS
we don't have a vehicle to replace the Challenger or Charger, dubious insane price increase, NO FACTORY SUPPORT, engineering being moved to India, outsourcing IT and engineering, mi-spelled words on the radio and settings, just for starts
at some point someone need to rethink the direction before its too late

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Zero development for 15 years on:
Durango, Challenger, Charger, 300 chassis and bot 5.7 & 6.4 NA Hemis. Everything was live for the moment supercharged Hemis and sending money to Italy. Only new trim packages for the US and spreading technology from top end models across other productlines.

- All In on Electrification was a total waste.
- Big price increases for old product.
- UAW & Stellantis is out of touch with the customer.
- 29 Million for a CEO who is another worthless investment.

CDJR has been crucified for the rest of the Stellantis world product. I check once a week hoping for a car guy with some sense to correct things but still no sign of it. These are sad times again for CDJR.

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I guess margins don't matter when it comes to this guys compensation.

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