Does Carlos Tavares deserve his 36.5 million euros wage? | EUROtoday
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VS'is a high-voltage Stellantis normal assembly which opens this Tuesday, April 16. Shareholders of the automobile producer ensuing from the merger between PSA and Fiat Chrysler should vote on the 2023 remuneration of CEO Carlos Tavares. Already underneath hearth from criticism up to now, she is being singled out once more.
At the tip of February, the board of administrators specified proposing an envelope of as much as 36.5 million euros, together with a hard and fast half and one other variable, a rise of 56% over one yr which makes Carlos Tavares the very best boss paid from France. A determine that the producer's board justifies by the truth that the corporate has achieved, underneath the management of the Franco-Portuguese boss, “one of the best performances in the automobile industry in 2023”. As a reminder, Stellantis earned a web revenue of 18.6 billion euros final yr, in third place within the CAC 40 after LVMH (22.8 billion euros) and Total (21.4 billion euros ). 10% of those income are redistributed to the group's workers.
However, is 36.5 million euros an excessive amount of? The debate on boss salaries stays open. On the one hand, there are those that consider that “salary freedom” needs to be the rule, particularly if an organization needs to draw probably the most gifted managers. Others assume, quite the opposite, that managers have a social accountability which might require them to self-limit their salaries.
Criticisms of companies
If the CEO of Stellantis earns as a lot in a day of labor as an worker of the group in a yr, his remuneration is near, and even under, that of his American counterparts corresponding to that of General Motors. On the opposite hand, he’s nearly six instances higher paid than the boss of Toyota, the world's main producer which made half of Stellantis' income in 2023 (8.5 billion euros). The comparability with the Americans is somewhat related because the United States represents the corporate's predominant revenue middle.
The three predominant shareholder voting advisory companies (ISS, Glass Lewis and Proxinvest) referred to as on shareholders to vote “against” the supervisor’s pay. Among the weather criticized, the truth that the reconversion of thermal automobile factories into electrical or hybrid motor manufacturing websites is taken into consideration when setting remuneration. For many observers, it is a regular, non-exceptional activity for a automobile producer supervisor. The firm has doubled its market valuation since its incorporation, to greater than 78 billion euros. “The depth of economic understanding of the inventory market escapes me. The essential factor for me is to do my job and make Stellantis a sustainable firm whereas negotiating the business's shift within the face of formidable Chinese rivals. »
I’ll react democraticallyCarlos Tavares
Will Stellantis shareholders insurgent in opposition to maestro Carlos Tavares who brilliantly led the merger between PSA and Fiat Chrysler? If they did, unsure it will change the place of the group's administration. Indeed, the resolutions on remuneration aren’t binding, as a result of the producer's head workplace is situated within the Netherlands. In 2022, the board of administrators overrode the opposition of 52% of shareholders to the 19 million euros allotted to Carlos Tavares. Traveling on Monday April 15 to the Trémery manufacturing facility (Moselle) at present being transformed to electrical energy, the Franco-Portuguese boss remained cryptic, promising: “We will see what the results of the vote of the final assembly of shareholders can be. I’ll react democratically. »
https://www.lepoint.fr/economie/carlos-tavares-merite-t-il-ses-36-5-millions-d-euros-de-salaire-15-04-2024-2557757_28.php