Carlos Tavares, “best paid manager in history”, according to the consulting firm Proxinvest

carlos tavares, general manager of stellaris, is the leader “highest paid in history”, according to Loïc Dessaint, head of governance issues at the consultancy firm Proxinvest, invited on Thursday, April 14, by franceinfo. Proxinvest, which publishes an annual ranking of company executive compensation, is studying this issue. “for 25 years”. “On average, in the CAC40, we are around 4 or 5 million euros. Here we are talking about 66 million euros, it is 13 times more, it is absolutely colossal”explained Loïc Dessaint, from the estimation of theThe manager PhiTrust, a minority shareholder of Stellantis, who voted against the remuneration of Carlos Tavares, which he estimates at 66 million euros, which was denied by a Stellantis spokesman, who put the figure at 19 million euros for 2021. “the rest” being alone “Hypothetical long-term items, up to 2028”.

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franceinfo: With this remuneration, is Carlos Tavares the highest paid French boss?

Loïc Dessaint: It is even the highest paid in history. Proxinvest has been studying this topic of executive compensation for 25 years, and is the highest paid in history. On average, in the CAC40, we are around 4 or 5 million euros. That’s already a lot of money as total compensation. Here we are talking about 66 million euros. It’s 13 times more, it’s absolutely colossal.

“The norm is, for example, not to exceed 150% of the fixed amount, for an annual bonus. Here at Stellantis we are almost 400% fixed”.

Loïc Dessaint, head of governance issues at the consultancy Proxinvest

in france info

It is almost extraordinary, especially since we have an annual bonus of 7.5 million euros.

Do other countries pay their bosses even better?

By way of comparison, a great boss of an American company earns around 15 million dollars. We can find some anomalous situations like that of the head of Tesla, Elon Musk. In contrast, the Japanese pay very little. In Europe, France is in the average. The Swiss and the British pay a little more. The Scandinavians and the Dutch a little less.

We talk a lot about the good performances of the group last year, but can we talk about a deserved salary?

There is no reason why they should be paid much more than the top executives at Renault or TotalEnergies. The remuneration of the executives is proposed to the Board of Directors and submitted for the approval of the General Meeting. There, the peculiarity is that Stellantis is a company under Dutch law, not subject to a binding vote as is the case in France. France was marked by the Carlos Ghosn case, when the Renault general meeting of shareholders rejected his remuneration. We had a democratic debate and we had concluded in France that it was not possible to maintain the remuneration against the opinion of the company’s own shareholders. European law is more flexible than French law.

So there was a consultative vote. Lhe Stellantis executive compensation package was also rejected by 52.12% of shareholder votes, but doesn’t that count?

In France, in case of rejection, Carlos Tavares would not have been able to receive his annual bonuses and all his action plans. He would only have the fixed amount, which is 2 million euros. Here, we are in the Netherlands, the law is different. But I welcome the position of BPI, the public investment bank that sits as a director on the board of directors, and that they rejected this envelope. It is a responsible decision. From now on, we must succeed in convincing the other two large shareholders, the Peugeot family and the Agnelli family.

“The problem is that John Elkann, the representative of the Agnelli family, presides over the council of cette société et qu’il perçoit lui aussi une rémunération stratosphérique. 7 million euros for a president of the council of administration, c’est beaucoup too.”

loic dessert

in france info

We hope that things move on, that the directors discuss with the shareholders to understand the reasons for this rejection and modify Carlos Tavares’ remuneration policy.

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