Detroit (Reuters) – Former director general of Stellantis, Carlos Tavares, received a total remuneration of 23.085,718 million euros last year, a drop of 37% compared to 2023, before his sudden departure of the group on December 1, shows a document of the manufacturer published Thursday evening.
At the operational controls of Stellantis since its creation in January 2021 following the merger between Fiat Chrysler Automobiles and PSA Peugeot Citroën, Carlos Tavares was ousted by the board of directors which reproached him for being too concentrated on the rapid drop in costs instead of keeping an eye on the wider objectives.
Its aggressive price strategy has contributed to the fall in sales in the United States, which the automaker is still trying to recover. The group’s action has dropped by around 50% over the last 12 months.
Despite the drop in his remuneration, Carlos Tavares will receive an additional starting indemnity of 2 million euros and a bonus of 10 million euros for having reached a series of objectives set by the company, added Stellantis in a regulatory document registered on Thursday.
In a leaflet published on Friday, the CFDT union of Stellantis sees in this envelope of 12 million “indecent farewells of Carlos Tavares” all the more “difficult to swallow the day after a very difficult salary negotiation where the need to remain reasonable and the need for prudence have been tirelessly repeated by management.”
On Wednesday, the group which is still looking for a managing director announced that it was aimed at returning to the growth of its sales and its generation of cash in 2025 and stabilization of its operating margin around 5%, prudent objectives after results in free fall in 2024.
John Elkann, president of Stellantis, said he had excellent internal and external candidates to succeed Carlos Tavares.
Before the poor results recorded last year, the remuneration of the former manager increased by 56% in 2023, to reach a total of 36.49 million euros. In the past, the shareholders have voted against his remuneration plan, but approved the envelope proposed for 2023.
(Report nora eckert; Jean Terzian and Kate Entringer, with Gilles Guillaume; edited by Augustin Turpin)
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