automotive industry

Stellantis CEO’s pay sparks anger ahead of French election

Reuters
Stellantis CEO’s pay sparks anger ahead of French election

AUTO EXEC. Stellantis CEO Carlos Tavares holds a news conference after meeting with unions, in Turin, Italy, March 31, 2022.

Massimo Pinca/Reuters

Minority Stellantis shareholder Phitrust estimates Carlos Tavares' total compensation package in 2021 at 66 million euros ($71 million)

PARIS, France – Stellantis chief executive officer Carlos Tavares’ 2021 pay drew an angry response from some trade unions on Wednesday, April 13, days ahead of a French presidential vote fought largely over cost-of-living concerns.

Minority Stellantis shareholder Phitrust estimated the value of the total compensation package awarded last year to Tavares at 66 million euros ($71 million) ahead of the carmaker’s annual general meeting which was launched virtually from 1300 GMT.

The group’s chairman said Stellantis would take into account the shareholder vote on the 2021 remuneration report, after it was opposed by 52% during Wednesday’s meeting.

Phitrust said Tavares’ 2021 pay of around 19 million euros would add to a stock package worth some additional 32 million euros and long-term compensation of some 25 million euros.

A Stellantis spokesperson disputed the 66 million euros figure put forward by Phitrust as “false.”

“The real compensation for 2021 is around 19 million euros. The remainder are hypothetical elements for the long term, until 2028,” added the spokesperson for Stellantis, whose brands include Jeep, Ram, Opel, and Maserati.

Gabriel Attal, the spokesman for the French government which holds a 6.15% stake through state-owned bank Bpifrance, told a press briefing the figures were not “normal” and showed there was a need for more regulation at the European level.

Jean-Pierre Mercier, a union representative for the hardleft CGT union, called the package “indecent and revolting,” while CFDT representative Christine Virassamy urged politicians to take urgent measures to cap executive salaries.

President Emmanuel Macron, a pro-European economic liberal, and far-right nationalist challenger Marine Le Pen have qualified for what promises to be a tightly fought presidential election runoff on April 24.

“These situations contribute and, unfortunately, lead to citizens taking up extreme positions during elections,” Virassamy said in a statement.

Stellantis had in February reported a 2021 net profit that close to tripled year on year to 13.4 billion euros. It had proposed to pay out over 3 billion euros in dividends.

The group’s largest trade unions did not immediately comment on Tavares’ pay package. – Rappler.com

$1 = 0.9251 euros

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