Stellantis has revealed a staggering 70% drop in net profit for 2024, highlighting the automaker’s deep financial troubles. The company recently published its 2024 Annual Report and Form 20-F, which exposes the severity of the situation. However, one of the most striking revelations is the lucrative compensation package that former CEO Carlos Tavares collected despite the company’s downturn.
In 2024, Stellantis reported a net profit of $5.8 billion but suffered a $133 million net loss in the year’s second half. The financial decline was attributed to several challenges, including declining sales and conflicts with dealers, unions, and suppliers.
Stellantis also continued its cost-cutting measures, which sparked a public backlash and workforce reductions. The company’s average workforce shrank by approximately 4.6%, dropping from 271,292 employees to 259,118.
Tavares, who abruptly departed from Stellantis in December, received a compensation package exceeding $24 million. Although this figure marks a 37% decrease from $39.5 million in 2023, it was still 350 times the average worker’s salary, which stood at $68,608 last year.
His compensation breakdown included a base salary of $2.08 million, fringe benefits worth $74,047, $21.33 million in long-term incentives: $21.33 million, and post-retirement benefits of $519,821. He also received $2.08 million in severance pay and an additional $10.4 million in incentive-based compensation.
Due to the company’s poor financial performance, Tavares and other Stellantis executives did not receive an annual performance bonus in 2024.
Stellantis employees have also felt the effects of the company’s financial downturn. UAW members are set to receive profit-sharing checks next month, but these payments have been severely reduced. Compared to last year, profit-sharing payments have shrunk by approximately 73%, leaving workers with just $3,780 each.
