AUTONEWS

Stellantis pays fortune to new CEO while firing employees, losing sales and facing internal chaos

Antonio Filosa, the new leader of Stellantis, will begin his career at the top of the automaker receiving at least US$ 4 million per year during the first two years of his term.

But that is just the beginning: the executive's compensation could reach US$ 23 million per year starting in 2028, if the goals set by the company are met.

Filosa, who officially takes office at the end of this month, arrives with the mission of reversing Stellantis's underperformance, especially in the United States.

The company, owner of brands such as Jeep, Peugeot, Fiat and Chrysler, has been losing ground in its largest market and is facing a wave of dissatisfaction among dealers, suppliers and investors.

According to internal documents released before the extraordinary meeting scheduled for July 18, Filosa will have a fixed salary of US$ 1.8 million per year — slightly less than what his predecessor, Carlos Tavares, received.

But the big difference lies in the bonuses and incentives: he will be able to pocket up to 400% of his fixed salary in annual bonuses, depending on the achievement of financial and operational goals.

In addition, the executive will be entitled to a stock plan that could represent up to 500% of his remuneration this year, rising to 780% in 2027.

Until these long-term bonuses begin to be paid in 2028, Filosa will also receive an annual cash bonus of US$1.2 million as transitional compensation.

The benefits don't stop there. Filosa will have access to the corporate health plan in the United States, supplementary pension plans, tax compensation and perks such as personal use of company aircraft and vehicles, private security and annual medical check-ups.

Stellantis says the five-year term was designed to ensure stability and strategic continuity amid the profound changes that the automotive sector is facing.

Filosa's formal appointment as a member of the executive board will be made official at the July meeting.

Former CEO Carlos Tavares, who left the company in December after disagreements with the board over the automaker's strategic direction, left with a controversial severance package valued at 35 million euros, even in a year marked by significant drops in the company's sales and profits. In 2023, despite all the problems, Tavares received a total of 36.5 million euros. 

The transition of leadership marks a crucial moment for Stellantis, which needs to regain its strength in the American market while navigating the challenges of electrification, digital transformation and growing global competition. In the meantime, the new CEO begins the journey with a deep pocket and the pressure at its limit.

The challenges... At the head of one of the largest car consortiums in the world, the executive will have to deal with several problems that have worsened in recent years, starting with the group's future in the United States of America (USA). Stellantis sales fell 15% in the US in 2024, with this downward trend also continuing in the first quarter of 2025, with a new decline of 12%. 

In addition to having to increase sales in the North American market, Filosa has another crucial mission on the other side of the Atlantic: repairing relations with dealerships, suppliers and unions, which were greatly weakened under Carlos Tavares. At issue is the fact that the previous management was accused by dealerships of prioritizing immediate profits, ignoring the need for commercial support. 

With inventories growing significantly and sales slowing, more aggressive incentives were requested — but to no avail. In relation to suppliers, after several conflicts, motivated essentially by pressure to reduce prices, relations were at a delicate point. Finally, he still has to rebuild relations with the powerful US union UAW (United Auto Workers), which even organized a public campaign to have the former CEO fired. Filosa has already spoken out on this last issue, calling Stellantis' production needs a "complex puzzle". 

Nevertheless, the executive has shown himself willing to improve relations with the union. "Further strengthening the bonds and trust we have with our partners — dealers, suppliers, unions and communities — is essential and will be a focus for me in this new role," reads an email from Filosa to his employees, shared by Automotive News Europe. 

Dealer trust...Filosa comes to the position with the support of the North American dealer network, thanks to his experience as Chief Operating Officer of Stellantis in the Americas. Sean Hogan, vice president of Sierra Auto Group, which has two Stellantis dealerships in Los Angeles, praises the new leader's closeness: “He already has a relationship with us. It wasn't awkward, no introductions were needed. Knowing the names of the dealerships and where they are located says a lot about him.”

“This company under Filosa's leadership could have a very strong and profitable return for both the dealerships and Stellantis,” said Sean Hogan, vice president of Sierra Auto Group.

For Hogan, Filosa's biggest challenge will be to recover market share without compromising profitability.

The weight of the 14 brands...In addition to the US operation, Filosa will also have to decide the future of the 14 brands that make up the Stellantis universe — plus one, the Chinese Leapmotor, which holds exclusive representation in international markets.

In 2021, shortly after the merger between FCA and PSA Group, Carlos Tavares promised to give each brand a decade to prove its viability. But last year, the then chief executive admitted that the performance review could happen as early as 2026.

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