The former CEO of Stellantis, Carlos Tavares, suddenly left the company at the end of last year. Today, his severance pay has been published, amounting to €12 million, divided into a €2 million departing fee and a €10 million bonus.
Last year, Tavares was paid €23.1 million in total, 37% less than the €36.5 million he received in 2023, which provoked some commotion at the time.
The Stellantis boss’s remuneration comprised different variable premiums linked to financial results. Stellantis’ profit margin was halved last year compared to the previous years, so the CEO was asked to leave earlier than planned.
Bonuses are key
The Stellantis Group’s annual report indicates that a deal with Mister Tavares was made, foreseeing a €2 million indemnity as required by Dutch law. Stellantis’ headquarters are situated in Amsterdam. Apart from that, Tavares will receive €10 million as a bonus for reaching the company’s transformation target, notably the electrification of the company’s portfolio.
In 2024, Tavares received his regular salary, €2 million, and more than €20 million in bonuses. According to the annual report, €10 million was allocated to achieve the transformation goals and €10.5 million of long-term premiums still needed to be paid.
Also, in 2024, Tavares got half a million euros as ‘pension remuneration.’ No performance bonus was paid last year because the financial objectives weren’t reached.
Financial report
Last week, Stellantis presented its annual financial report. The net benefit decreased by 70% to €5.5 billion, and the operating margin shrunk from double-digit values to a meager 5.5% in a year marked by difficulties in North America and a sales slump in Europe.
The former CEO’s remuneration has been scrutinized and criticized for many years. It was among the highest in the automotive business and has been under fire, especially in France and Italy, home countries to all of the group’s European brands.
Since Tavares forged the Stellantis Group from a merger between PSA and FCA in January 2021, Carlos Tavares has been paid more than €100 million in wages and bonuses in these four years. The Group’s board, directed by Agnelli heir John Elkann, is still looking for a successor for Tavares. His appointment is due any moment now.
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