Finance
Former Stellantis CEO Tavares' pay package fell 37% to $24 million in 2024
Published by Global Banking and Finance Review
Posted on February 27, 2025
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By Nora Eckert and David Shepardson
DETROIT (Reuters) -Carlos Tavares, the former CEO of global automaker Stellantis saw his total pay fall 37% last year to 23 million euros ($23.91 million) before he unexpectedly resigned in December.
Tavares clashed with the Chrysler and Fiat owner's board over his near-term focus on cutting costs, rather than keeping an eye on broader goals. His aggressive pricing strategy contributed to slipping U.S. sales, which the automaker is still trying to claw back.
Tavares will receive an additional 2 million euros in severance and 10 million euros in bonus pay this year for meeting a series of company milestones, it said in a regulatory filing Thursday.
Stellantis this week gave a cautious outlook for 2025.
As the company's chairman John Elkann interviews CEO candidates, deciding how many of the automaker's 14 brands have a viable future is a significant priority. The next CEO will be announced in the first half of the year, Elkann said.
"We have excellent candidates, both internally and externally," Elkann told analysts on Wednesday when the automaker reported its 2024 financial results.
Shares in Stellantis have fallen by about 50% over the last 12 months.
Its new CEO will be tasked with stabilizing a global company with 14 brands, reversing a decline in U.S. and European market share, competing against tough Chinese rivals, and navigating disruptive trade policies championed by U.S. President Donald Trump.
The Franco-Italian-U.S. automaker is also working to repair frayed relationships with dealers, unions, suppliers and shareholders, bringing in new executives and more open communication with those stakeholders.
Before last year's poor performance, Tavares' pay increased 56% in 2023, to a total of 36.49 million euros. Shareholders have in the past voted against his compensation package.
Stellantis said that its employees earned an average of about 66,000 euros in 2024, down 6% from 2023. Tavares' total compensation was 350 times that of the average employee.
($1 = 0.9619 euros)
(Reporting by Nora Eckert in Detroit and David Shepardson in Washington; Editing by Jamie Freed)