Shareholders have approved the compensation package for Stellantis CEO Carlos Tavares, a significant improvement from the previous year’s rejection. The 2022 executive compensation report, which includes remuneration for senior executives, was approved by 80.4% of shareholders at the company’s Annual General Meeting (AGM).
Tavares’ total remuneration, including long-term incentives, was €23.5 million ($25.6 million) in 2022, up from €19.2 million ($21.2 million) the previous year. Stellantis claims that 91% of the total is variable, with €11.6 million ($12.8 million) in long-term incentives. This increase in Tavares’ pay drew criticism from some quarters, particularly in France, during a presidential election campaign marred by a crisis caused by rising living costs.
In comparison, regarding wages for General Motors’ CEO, Mary Barra, the Detroit automaker will release its numbers later this month. Barra did receive €26.3 million ($29.1 million) in 2021. Ford Motor Company CEO Jim Farley earned €19 million ($21 million) in 2022, down from nearly €21 million ($23 million) in 2021.
Meanwhile, Renault and Volkswagen CEOs received €4.5 million ($5 million) and €7.4 million ($8.2 million) last year. As a result, Tavares’ salary remains high compared to his peers.
It is worth noting that Stellantis changed its remuneration policy and disclosure practices following shareholders’ rejection of the executive compensation report for 2021. The rejection was caused by the merger of Fiat Chrysler Automobiles and Groupe PSA, resulting in Stellantis, trade unions, and politicians criticizing Tavares’ high compensation.
The rejection had prompted a shift in the company’s strategy, with Stellantis now emphasizing performance-based rewards for exceeding ambitious goals. As a result, the company reported a 13% decrease in CEO compensation from 2021 to €14.9 million ($16.5 million), reflecting the company’s new approach.
Stellantis President John Elkann, an Agnelli descendant and the company’s largest shareholder through Exor, expressed satisfaction with the outcome. “The goal of the structure,” Elkann stated, “is to enable Stellantis to attract and retain the most highly qualified executives and colleagues and to motivate them to achieve business and financial goals that create value for all of you, our shareholders, and all of our stakeholders in a manner consistent with what we believe to be our purpose and our values.”