Some Investors Furious About $26M Payout to CEO Responsible for Stellantis' Downfall | Carscoops

      Shareholders have voted to grant ousted CEO Carlos Tavares a substantial payout, despite the company's significant decline in sales and profits.

      Former Stellantis chief Tavares will receive €23.1 million ($26.3 million) in compensation. A majority of 67% of investors supported this decision, while others criticized it as an “unacceptable” reward for failure. Tavares was dismissed in December 2024, a year that saw profits plummet by 70%.

      The compensation for automaker CEOs often appears excessive, and this sentiment is heightened when such payments are linked to a year of considerable losses in both sales and stock value. This perspective was echoed by a group of dedicated Stellantis investors who attempted, but ultimately failed, to stop the former CEO from receiving tens of millions for his efforts in 2024, a year marked by declining profits and production.

      This week, 67% of Stellantis investors approved the award of €23.1 million ($26.3 million) to Tavares for his leadership last year, which includes his standard salary along with an additional €12 million ($13.7 million) in severance and milestone bonuses, according to Bloomberg.

      Before the shareholder meeting that approved this package, a notable stockholder, Charles Pinel, CEO of Proxinvest, had campaigned against the compensation, stating, “It’s not acceptable to award severance pay to a manager who led the company to a situation of failure.”

      Tavares's pay package for 2024 is significantly less than the impressive €36.5 million ($41.5 million) he earned in 2023. At that time, Stellantis appeared to be in a more favorable position. In contrast, profits fell by 50% in the first half of 2024, ultimately dropping 70% to €5.5 billion ($6.3 billion) by year’s end. By then, Tavares had been dismissed, with the announcement made in early December.

      Five months later, Stellantis is still seeking a new CEO, although Chairman John Elkann asserts that a successor will be appointed this quarter. The removal of Tavares has not resulted in an immediate turnaround for Stellantis, as sales dropped by 20% in the first three months of 2025. Additionally, tariffs imposed during Trump's presidency are proving problematic for the company, as many of its vehicles and necessary components cross borders before reaching U.S. dealerships.

      However, some of Tavares’s unpopular decisions, like discontinuing the Hemi V8, are being reversed. Dodge is reportedly working on redesigning the new Charger, which was originally intended only for electric and Hurrican I6 powertrains, to accommodate a V8 engine.