- Shares in Stellantis have slumped by around two-thirds in the past 12 months
A prominent shareholder in Peugeot owner Stellantis plans to vote against chief executive Carlos Tavares’ €23.1million remuneration deal.
Allianz Global Investors said Tavares’ pay package ‘appears overly generous’ due to Stellantis’ ‘lacklustre operating performance’ and factors concerning his abrupt departure last December.
The payout comprises a €2million base salary, a €500,000 ‘post-benefit retirement expense’ and €20million as part of a long-term incentive (LTI) plan.
Allianz GI highlighted the impact of Stellantis’ profit warning in September on variable pay, which it says is only reflected in the CEO’s bonus.
The investment firm also said it has ‘ongoing concerns’ regarding the remuneration committee’s ‘actions and oversight’.
Because Stellantis’ chairman is not standing for re-election, Allianz GI also intends to vote against two non-executive directors belonging to the committee.
Thumbs down: Stellantis shareholder Allianz Global Investors plans to vote against chief executive Carlos Tavares’ €23.1million compensation deal
The fund manager has consistently opposed Tavares’ compensation package since he became the automotive giant’s first CEO following its creation.
Stellantis was formed in 2021 from the amalgamation of PSA Group with Fiat Chrysler Automobiles, making it the world’s fourth biggest car manufacturer.
Matt Christensen, global head of sustainable and impact investing at Allianz, said the latest decision reflects ‘our commitment to ensuring that executive compensation is aligned with long-term company performance and stakeholder interests’.
He added: ‘We believe that the current pay package does not adequately address the concerns raised during our engagement efforts, and we urge the remuneration committee to act in the interest of shareholders while also taking sustainability into account.’
Shares in Stellantis have slumped by around two-thirds in the past 12 months due to production delays, falling European sales caused partly by high interest rates, and elevated competition from Chinese rivals.
In its full-year results, the company reported that net turnover declined by 17 per cent to €156.9billion, while its net profits plunged by 70 per cent to €5.5billion.
And in just the past five days, the firm’s shares have shrunk by 18 per cent amidst the fallout from President Donald Trump’s imposition of new tariffs, including a 25 per cent tax on US car imports.
Since Trump’s ‘Liberation Day’ speech on 3 April, Stellantis has paused production at assembly plants in Canada, Mexico, and Michigan and furloughed 900 workers at five US facilities.
In an email to staff, Antonio Filosa, Stellantis’ chief operating officer for the Americas, said: ‘These are actions that we do not take lightly, but they are necessary given the current market dynamics.
‘We understand that the current environment creates uncertainty. Be assured that we are very engaged with all of our key stakeholders, including top government leaders, unions, suppliers and dealers in the US, Canada, and Mexico, as we work to manage and adapt to these changes.’
DIY INVESTING PLATFORMS
Affiliate links: If you take out a product This is Money may earn a commission. These deals are chosen by our editorial team, as we think they are worth highlighting. This does not affect our editorial independence.