Carlos Tavarès, President of the Executive Board of PSA, could receive a premium of 1 million euros, for the implementation of the plan of rehabilitation ofOpel. This is what the French car manufacturer proposes to its shareholders. In total, if it is adopted at the general meeting of April 24, the compensation of Carlos Tavares for the 2017 financial year will be 6.7 million euros – 1.3 million euros of fixed share, 2.4 million variable portion, 1 million exceptional bonus and 1.99 million euros in performance share awards – after 4.7 million euros for 2016.
“This exceptional compensation is linked to the development and implementation of Opel Vauxhall’s PACE! Recovery plan, immediately after the acquisition of Opel Vauxhall, and aimed at restoring the economic values of Opel Vauxhall”, it is specified in the reference document. The aim of this plan is for General Motors’ former European division to return to a positive financial situation within two years.
“PSA’s supervisory board has considered that the extension of the scope of the group, linked to the acquisition of Opel Vauxhall, should lead to an exceptional remuneration which takes into account the contribution of Carlos Tavares to the negotiation with General Motors and to the design of the PACE! plan – Opel Vauxhall’s turnaround plan – in recurring loss for 20 years, “said a spokesman for PSA.
Record results in 2017 despite the integration of Opel
“Under the leadership of Carlos Tavares, 2017 has been an exceptional two-fold event for the PSA Group,” he recalled, citing the group’s record financial results “barely four years after experiencing near-bankruptcy”. acquisition of Opel, which allows French to become the second largest European car manufacturer.
The current operating margin of PSA’s automotive division reached a record 7.3% excluding Opel Vauxhall in 2017, up from 6% in 2016.
With Reuters (Dominique Rodriguez, edited by Juliette Rouillon)