The small shareholders were no match for Agnelli and Peugeot

The remuneration of the Stellantis boss, which could reach 36.5 million euros for 2023, was confirmed on Tuesday by shareholders during the general meeting. A highly recommended vote that covers a wide range of differences between shareholders.

The general meeting of Stellantis voted on Tuesday to support the payment of Carlos Tavares. 70% of the shareholders voted for the manufacturer’s CEO package, which can reach a maximum of 36.5 million euros. If you look more closely, the investors voted against it but that was not enough due to the weight of the founding family.

Indeed, contrary to appearances, Carlos Tavares did not have the support of minority shareholders. His race actually got 70% of the votes cast but two thirds were contributed by Agnellis and Peugeots. The two founding families of Fiat and Peugeot hold a third of Stellantis’ votes.

But since not all shareholders vote, their power is greater and in fact is almost half of the general meeting. Even the presence of Bpifrance does not change the balance of power, despite its 10% vote. The public body abstained from voting on Tuesday.

The most powerful founding families

According to our calculations, the majority of minority shareholders voted against the payment of Carlos Tavares: 800 for, 600 against. But this was not enough considering the weight of the family. Especially since this year, Agnelli and Peugeot have also benefited from two voting rights because they have been shareholders for more than three years. Which explains the difference in voting compared to 2022 (52% vs. two years ago).

A theoretical policy intended to reward long-term investors. But in practice, it further locks the rule of Stellantis into the hands of the two families.

Although a consultative vote, the vote of the automakers’ shareholders was closely scrutinized after the criticism of the manager’s salary, up to 56% compared to 2022. Three consulting firms advised them not to approve this payment. The day before Carlos Tavares responded to his opponents by using a “contractual direction between the company and (him)”.

“Regarding the footballer and the Formula 1 driver, there is a contract,” he explained on Monday, in response to a question from BFM Business.

This payment includes a bonus of ten million euros linked to the transformation of the group created in 2021 from the merger of PSA and Fiat-Chrysler as well as bonuses given only if certain goals are met by 2025, the last year of his current mandate. Initially, Carlos Tavares will receive 23.5 million euros for the year 2023.