These are figures which will undoubtedly once again fuel debate. The remuneration of Carlos Tavares, at the head of the car manufacturer Stellantis, could ultimately reach 36.5 million euros for the year 2023, the group announced this Friday, February 23 in its financial report, an increase of 56% in one year.
This is explained in particular by a performance bonus of ten million euros for the “transformation” of the group created in 2021, details the management of Stellantis. It notably rewards the launch in Moselle of the production of electric motors and gearboxes for hybrid cars, after the multiplication of sales of electric cars in 2022 Carlos Tavares’ remuneration also includes retirement pensions which will be paid over the long term. term, but also bonuses awarded only if he meets the objectives set for 2025, the last year of his mandate at the head of the manufacturer.
Initially, Carlos Tavares will receive 23.5 million euros for the 2023 financial year, underlined a Stellantis spokesperson. Paid largely in shares, this remuneration also increases with the value of the group’s stock, which has almost doubled since its creation in 2021 by the merger of Peugeot-Citroën and Fiat-Chrysler.
Record results
This increase in remuneration is inseparable from the excellent results of Stellantis for the year 2023. The fourth largest automobile group in the world, with its Peugeot, Fiat and Dodge brands, experienced a new record profit of 18.6 billion euros for 2023, up 11% year-on-year. Its turnover is approaching 190 billion euros, in an automobile market which has recovered after long months of slowdown.
Enough to allow the group to announce almost a week ago a plan to redistribute 1.9 billion euros to its employees around the world. Between participation and profit-sharing bonuses, this represents a minimum amount of 4,100 euros gross for each of its employees, compared to 4,300 in 2022, and a maximum of 6,000 euros, specified the group’s human resources director, Xavier Chéreau, during a press conference.
This “return” made to employees is “completely correct and completely well earned,” assured the group’s boss, Carlos Tavares, explaining that the record profit for 2023 had above all been accomplished by “the excellent work employees”. “They were remarkable and I would like to thank them and congratulate them warmly,” he declared.
Pending validation by shareholders
Not sure that this is enough, however, to avoid criticism from his detractors. Ranking among the highest paid bosses in the CAC 40, general manager Carlos Tavares attracted the wrath of Emmanuel Macron in 2022, who deemed the “astronomical” amount of his compensation “shocking and excessive”. His fixed salary does not change, however, remaining at two million euros per year. Conversely, its 2023 performance bonus is even down slightly, to 11.4 million euros, because the group’s operating margin has fallen slightly.
In its report, Stellantis argues that this remuneration should rather be compared with that of multinationals such as Boeing in the United States or Volkswagen in Europe. The group makes the majority of its sales in Europe, but draws most of its profits from the American market. Carlos Tavares’ compensation ranked at the top of these comparisons in 2021 and 2022, ahead of Mary Barra of General Motors for example, but it is in line with the group’s performance, according to Stellantis.
This remuneration will be submitted to a (non-binding) vote by the group’s shareholders at their general meeting on April 16. The latter had rejected it for the 2021 financial year before validating it for 2022, following clarification efforts on the part of the manufacturer. Shareholders who will also receive around 7.7 billion euros for the 2023 financial year, between dividends and a share buyback program.