During its annual general meeting on April 13, shareholders of the company that makes Jeep SUVs, Ram pickup trucks, and other automobiles unanimously approved CEO Carlos Tavares’ compensation.
According to spokesman Ferno Silveira, 80.44% of shareholders voted in favor of Tavares’ compensation, demonstrating their support for it. The decision was a turnabout from the advisory vote in the previous year when the CEO’s compensation was opposed by the majority of shareholders.
The sum of Tavares’ 2022 remuneration, which also includes long-term compensation, increased by 22% from the previous year to $24.8 million. Whereas, the automaker reported a 13% decrease in his total compensation of $15.8 million from cash and vested equity awards.
In response to criticism of Tavares’ compensation from some, including the French government amid an election, 52% of Stellantis shareholders withdrew their support at the company’s annual meeting last year. Although the advisory vote didn’t directly alter executive remuneration, it served as a guideline for the company’s board of directors. In response, the board held two rounds of discussion with institutional investors.
Based on the feedback, the 2022 compensation report disclosed additional information about performance goals and pay, including a more detailed description of Tavares’ direct compensation. The company’s long-term incentive plan’s equity awards will now exclusively be made up of performance shares, as the shareholders adopted a modification to the policy.
During the meeting, Stellantis Chairman John Elkann emphasized the “meritocratic” culture of the business that supports financial, social, environmental, and corporate governance goals.
“The goal of the structure,” he continued, “is to enable Stellantis to attract and retain the most highly qualified executives and colleagues and to motivate them to achieve business and financial goals that create value for all of you, our shareholders, and all of our stakeholders in a manner consistent with what we believe to be our purpose and our values.”
