Stellantis disclosed in a filing today that CEO Carlos Tavares’ 2022 pay fell 14% to 14.9 million euros ($15.71 million US). Tavares did not receive a retention bonus in 2022, compared with a bonus of about 2 million euros in 2021, the filing showed.
Stellantis profit beat forecasts on Wednesday due to strong car prices and greater-than-expected merger benefits, but warned of pricing pressure as industry-wide supply chain problems ease.
On Wednesday Stellantis announced record full-year results, reporting a 26% rise in net profit to 16.8 billion euros ($17.9 billion US) and a 41% annual jump in global battery and electric vehicle sales. Tavares said the results also demonstrated the effectiveness of the company’s electrification strategy in Europe, with 288,000 battery and electric vehicle (BEV) sales in 2022 and 23 BEVs now on the market.
The company also announced a 4.47 billion euro dividend payout to shareholders equating to 1.34 euros per share, subject to shareholder approval, while the board approved a share buyback of 1.5 billion euros to be executed by the end of 2023.
As part of the company’s record results in North America, eligible U.S. workers represented by the United Auto Workers union will receive profit-sharing payouts of $14,760 US. Although payments may vary, based on hours worked.
Last year, Tavares’ compensation of around 17.4 million euros drew an angry response from some trade unions, which urged politicians to take measures to cap executive salaries.
Regardless of the income drop for Tavares, that’s over $1.3 million US a month that he receives for his role as Stellantis’ CEO. Still, as exorbitant as that might seem to many, in context Tavares is well behind Elon Musk (and whatever billion he makes that seems to fluctuate week by week) or even Mary T. Barra, Chair and CEO of General Motors who managed to earn $29,136,780 US in 2021.
Compensation for automotive CEOs sure has changed since the time Citroën was a company into itself, though people like Lee Iacocca started the meteoric rise in CEO pay over 40 years ago. Iacocca earned $868,000 US as Chairman of Chrysler in 1980, placing him 100th on Forbes’ annual Best Paid CEOs list. His 1986 total compensation of $20.5 million US–on the back of a boatload of options–placed him at No. 1 at that time.