AUTONEWS

Stellantis shareholders want Carlos Tavares' skull

As sales plummeted, profits evaporated and shares melted on the market, Stellantis’ then CEO, Carlos Tavares, was rewarded with a “little gift” of €23.1 million 

For many investors, this sum of money feels like a slap in the face, especially considering that the executive himself was dismissed at the end of the year.

The approved amount includes base salary, bonuses for targets and, surprisingly, a generous severance package for his departure in December 2024.

All of this was approved by 67% of shareholders at the last meeting, even after a noisy attempt to block the payment, led by Charles Pinel, CEO of Proxinvest.

“It is unacceptable to pay severance to a manager who led the company to failure,” said Pinel, who tried to raise awareness among other investors before the vote.

In fact, 2024 was a disaster for Stellantis. The company's profits fell by half in the first half of the year and plummeted 70% by the end of the year, closing at €5.5 billion.

Sales followed the same path, with a 20% drop in the first quarter of 2025 alone.

The storm was worsened by the tariff war initiated by Donald Trump, which hit the company's production model hard — with factories spread across Mexico, Europe and the US, many of the components cross borders several times before becoming a car for sale.

The bad phase cost Tavares his job, but not his bonus.

And, curiously, even with the crisis in place, Stellantis has not yet announced his replacement — a promise that, according to chairman John Elkann, should be fulfilled in the second quarter.

Among the controversies of the Tavares administration that angered shareholders and fans of the brand is the end of the V8 HEMI engines, Dodge's icons. The measure provoked outrage and directly affected the image of the American brand.

Now, with the change in leadership, rumors suggest that Dodge is reevaluating the new Charger — originally planned only with an electric motor or a six-cylinder Hurricane — to perhaps resurrect the legendary V8.

Meanwhile, the former CEO's image continues to be tarnished by a hefty paycheck amid a bleak scenario. For investors who voted against the payout, the feeling is that the “consolation prize” has become a reward for the catastrophe.

In a statement released last week, AllianzGI notes that Carlos Tavares' remuneration "has generated notable opposition since the merger of Fiat Chrysler and PSA, with 44% of votes against in 2021, 52% in 2022, 48% in 2023 and 30% in 2024".

The €23.1 million package for Carlos Tavares' departure from Stellantis goes to vote

"The €23.1 million salary package for the former CEO, proposed in the remuneration report, appears disproportionate, especially considering the lower-than-expected operating results and the circumstances surrounding the CEO's forced resignation," the manager reiterates.

Since Carlos Tavares' departure on December 1, 2024, Stellantis has not had a CEO, although the selection process is "well underway" and should be completed in the first half of this year.

During Tuesday's general meeting, seven new non-executive directors will also be voted on for Stellantis, something that has also been contested by the shareholder.

AllianzGI will vote against the appointments of Fiona Clare Cicconi and Benoit Ribadeau-Dumas as non-executive directors, "due to the fact that they are both members of the Remuneration Committee".

The manager considers that the performance and supervision of the Remuneration Committee continue to be a cause for concern.

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