A minority shareholder announces the amount of 66 million euros concerning the remuneration of Carlos Tavares, boss of Stellantis. The group’s communication speaks of 19 million euros. What do Franche-Comté employees think? reactions.
Carlos Tavares, boss of Peugeot-Citroën and more broadly of the Stellantis group, could be the “highest paid manager in history” with an estimated remuneration of 66 million euros, according to the management company PhiTrust.
This minority shareholder of Stellantis announced Tuesday, April 13 to have voted against the remuneration of Carlos Tavares. She estimates it at 66 million euros for the year 2021. “In detail, the 63-year-old manager must receive 19 million euros for the year 2021 alone (1.9 million fixed + 7, 5 million variable + 5.5 million for the first year of a three-year performance plan + 1.7 million bonus for completing the merger + 2.3 million contribution to his future retirement), to plus 47 million free share grants and exceptional compensation based on Mr. Tavares’ ability to transform Stellantis, a large part of which is subject to the achievement of objectives and not being touched until 2026- 2028″ as LeMonde.fr explains in detail. Contacted by AFP, the management of Stellantis pointed out that “the figure announced by PhiTrust is false, and Carlos Tavares’ salary for 2021 is indeed 19.1 million euros”.
Carlos Tavares, CEO of Stellantis. • © ERIC PIERMONT / AFP
The information obviously caused a reaction, at a time when staff reductions and budget cuts are increasing, particularly in the Pays de Montbéliard, stronghold of the Peugeot brand. We interviewed trade unionists and workers at PSA Stellantis, to find out what they thought of this information.
Alex has been an employee at PSA in Sochaux for 14 years. He works on the doors of the 3008 and 5008 vehicles. “I find it really nonsense. We take the workers for idiots” he tells us straight away. “The cadences are endless with the pressure at all levels. They try to robotize everything to always have more and he touches millions” he adds, visibly upset.
Aurore Boussard, CGT Stellantis Sochaux secretary obviously heard the news. What did she think when she discovered this figure of 66 million euros? “I thought it was outrageous, especially given the recent discussions on wages with management, which has been very tight-fisted, based on inflation that is beside the facts.” She explains to us that there was “almost no salary increase”.
Aurore, CGT Stellantis representative, interviewed by our journalist Emilien Dias. • © Remy Poirot – France Televisions
On the side of the CFDT union, we speak of bitterness. Benoît Vernier confirms Aurore Boussard’s comments. “When we saw the salary negotiations, we tried to have a 1% salary increase above inflation and the management explained to us that we were at a critical moment for the automotive industry and that “We had to be responsible and reasonable…” he recalls.
“It was complicated to accept this look in the rear view mirror when we saw the figures announced. We are clearly shocked. Our wish would be that, on his own, he gives up a part and that it is reinjected into investments in the group” tells us the trade unionist.
Benoît Vernier, CFDT union representative at Stellantis. • © Remy Poirot – France Televisions
“The CEO has more money than he needs, while the employees need that money. These success numbers cannot justify this compensation. This money should be redistributed to the employees in a fair way with a salary increase” adds Aurore Boussard, referring to the good results of the company Stellantis since the arrival of Carlos Tavares. She does not believe in Stellantis’ claims regarding the 19 million euros. And to conclude: “I think they even tried to reduce this figure to silence everyone’s anger”.
Vincent, an employee at PSA Sochaux, also reacts to this news. “So here we are with a CEO who earns €180,000 a day (not to mention the other unquantified benefits) and who keeps harping on his employees all the time that efforts must be made to sustain the company. PSA is reducing its workforce day by day to ensure the “competitiveness” of the company. The employees are increased by 3% against 17% for him… It is normal for a CEO to earn more than an employee, but not in these proportions ” he said.
We push people out while our leaders swim in money. A worker takes more than 10 years to earn what Mr Tavares receives in 1 month. It’s completely indecent. All these people are disconnected from reality.
Vincent, PSA Sochaux employee
Hanane, also an employee at Sochaux, considers this remuneration “shameful” compared to the bonus of 4000 euros gross received by the employees. She denounces the deteriorating salary conditions and degraded premises. “I work in mechanics. The building is so old. There are only two women’s toilets in the whole workshop. However, to increase the pace and do untenable shifts, that they did… I can tell you swear that it’s hell and that the working conditions have deteriorated” she testifies.
3008 and 5008 assembly line in Sochaux, in the heart of the historic Peugeot-PSA factory, now Stellantis • © France 3 Franche-Comté
“Mr Tavares having heavy responsibilities, it is normal to receive a good salary. But there, it is abused. He should think that without the “little hands” the company would be nothing” explains Evelyne.
Fabrice works at Stellantis Vesoul and qualifies the opinion of the people quoted above a little, even if he finds the remuneration excessive compared to “workers, executive technicians who obviously give themselves just as much”. “But it’s the law of the market. It’s now the 4th group in the world,” he told us. He adds all the same: “We just must not forget those who make the group live on a daily basis. The profit-sharing bonus we received, ok, but it should have been even more important from my point of view. “
The Stellantis group operates and markets fifteen automobile brands, including five from Groupe PSA (Citroën, DS Automobiles, Opel, Peugeot and Vauxhall) and ten from FCA (Abarth, Alfa Romeo, Chrysler, Dodge, Fiat Automobiles, Fiat Professional, Jeep, Lancia, Maserati and Ram).