Stellantis Shareholders Approve $40M Payout for Former CEO

Stellantis shareholders on Tuesday approved a pay package totaling €35.1 million (approximately $37.4 million USD) for former CEO Carlos Tavares. The compensation includes a €23.1 million salary for 2024 and an additional €12 million in severance and milestone bonus payments for the year.

As reported by Bloomberg, 67% of shareholders voted in favor of the company’s 2024 executive compensation report during its annual general meeting in Amsterdam. 

This green light comes despite heavy opposition from key proxy advisers and investment groups. Allianz Global Investors, Proxinvest, and Institutional Shareholder Services (ISS) had urged shareholders to reject the payout, citing the company’s rough financial year and rising concerns over corporate governance.

“It’s not acceptable to award severance pay to a manager who led the company to a situation of failure,” said Proxinvest CEO Charles Pinel in an interview ahead of the vote.

Tavares stepped down earlier this year after overseeing a 20% drop in North American deliveries in the first quarter and ongoing delays in European model launches. While Stellantis continues to search for a permanent successor, Chairman John Elkann is filling the CEO role on an interim basis.

Despite the internal turmoil, Stellantis stock jumped as much as 6.1% in Milan after former President Donald Trump hinted that some automakers might receive temporary relief from proposed U.S. auto tariffs. Even so, the stock remains down 34% year-to-date.

Speaking at the meeting, Elkann acknowledged that Stellantis and its competitors are facing intense pressure. “U.S. tariffs and over-regulation in Europe are making conditions tougher,” he said. “But we are encouraged by what President Trump indicated yesterday regarding the car industry.”

Tavares has been no stranger to criticism over his compensation. In 2023, he received a total pay package worth €36.5 million ($41.2 million), sparking widespread backlash from labor groups and investors alike. That year, shareholders rejected his pay package in a non-binding vote—just like they did back in 2021.

This year’s pay report also drew scrutiny for attempting to increase the pool of long-term executive incentives. ISS called the request unnecessary and labeled past executive pay “excessive.” The firm questioned Stellantis’ justification for needing to raise limits again, especially without a new CEO in place.

Proxinvest also pushed for shareholders to vote against the reappointment of several board members, including Fiona Clare Cicconi, a Google HR executive who has represented Stellantis workers on the board since 2021. They argued that since she isn’t employed by Stellantis, she shouldn’t be in that role. Nonetheless, shareholders approved all company proposals, including board nominations.

Elkann reaffirmed the company’s commitment to appointing a new CEO before the end of the second quarter. Stellantis declined to comment on the pushback from proxy groups, and Tavares did not respond to Bloomberg’s request for comment.

Source: Bloomberg

NOTE: We edited these numbers after original changes to the source article.