Former Stellantis CEO earned over $24M in total compensation last year

Stellantis, the automotive giant formed in 2021 through the merger of Fiat Chrysler Automobiles and PSA Group, has been in the spotlight due to the compensation of its former CEO, Carlos Tavares. Tavares received a total compensation package of over $24 million (23.09 million euros) last year, a significant sum that drew attention to the disparity between executive pay and that of the average worker. In fact, Tavares’ compensation was revealed to be 350 times higher than that of the average employee at Stellantis.

This news came shortly after the automaker announced a 70% decrease in net profit in 2024 compared to the previous year. Despite generating a net profit of $5.8 billion (5.5 billion euros) for the year, the company also reported a net loss of $133 million (127 million euros) in the second half of the year, reflecting a challenging period for the organization.

Carlos Tavares left his position at Stellantis abruptly at the beginning of December, amidst ongoing challenges faced by the company, including declining sales and disputes with various stakeholders such as dealers, unions, and suppliers. While the search for his successor was already underway, Tavares’ departure marked the end of an era for the company.

In the SEC filing that disclosed Tavares’ compensation details, it was noted that his total pay package had decreased by nearly 37% from the previous year, when he earned $39.5 million (36.5 million euros). The average worker at Stellantis saw a decline in their earnings as well, with their compensation listed at $68,609 (65,993 euros) last year, down from $73,195 (79,404 euros) previously.

Additionally, Stellantis announced that profit-sharing checks for its UAW members would amount to $3,780, a significant reduction from the previous year. The company’s workforce also saw a decrease in numbers, with the average employee count dropping from 271,292 to 259,118, reflecting the impact of the company’s restructuring efforts.

Breaking down Tavares’ compensation, it included a base salary of $2.08 million (2 million euros), fringe benefits worth $74,047 (71,224 euros), a long-term incentive of $21.33 million (20.5 million euros), and post-retirement benefits expenses of $519,821 (500,000 euros). The filing emphasized that executive compensation at Stellantis is tied to company performance and follows the principle of pay for performance.

Overall, the revelations about Carlos Tavares’ compensation shed light on the complex dynamics of executive pay, workforce remuneration, and corporate performance within Stellantis, a company with a rich history and a legacy shaped by its recent merger and ongoing challenges in the competitive automotive industry.