How much money do the richest CEOs in the auto industry make?

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7 months ago

How much money do the richest CEOs in the auto industry make?

The income obtained in private activity should not alarm anyone beyond attracting attention. However, the size and decisions of some groups can have a decisive impact on some economies. Anyway, the current debate is the money he will receive Carlos TavaresCEO of the Stellantis Group.

This French-Italian-American conglomerate is one of the largest sellers of vehicles in the world and is made up of the largest swarm of car brands on the planet. Peugeot, Citroën, Fiat, Jeep, Ram, DS, Alfa Romeo, Abarth, Chrysler, Dodge, Lancia, Maserati, Opel y Vauxhall They are today under the same umbrella.

And the one who commands the actions is Tavares, an executive of Portuguese origin who was Carlos Ghosn’s right-hand man, the former CEO of the Renault-Nissan alliance who was accused of corruption in Japan and who starred in a cinematic escape inside a musical instrument case. .

At the last general meeting of Stellantis shareholders, with an overwhelming majority of 70% of the votes, a 56% increase in his salary compared to 2023 was approved. His annual income now reaches US$ 39.500.000.

This fact brought the issue to the forefront due to the very high figures that many executives receive, especially in the countries of origin of each company or group. Tavares had already been criticized in France. However, the one who gets the most money is Elon Muskwhose salary package is currently being reviewed by the American justice system due to the astronomical amount he can receive: what Tavares receives must be multiplied by 1,412.

Leader of constant growth

Tavares was the responsible for the recovery of Peugeot after the first half of the last decade. This allowed him to take the reins of the mega group starting in 2021, when Stellantis was formed, which continued on the path of success with practically all of its brands.

This present is what favors the CEO to have a remuneration that grew more than 50% compared to the previous year. There are almost 110,000 dollars per day that enter the Portuguese account, a value close to the entire annual income that the president of France has, Emmanuel Macron (142,000 euros, about 152,000 dollars). One fact to keep in mind: the French Government owns 6% of Stellantis.

That is why, in part, the salaries of the CEOs of large automobile groups are a regular object of public scrutiny and the generator of debates, especially due to the million-dollar figures that have been escalating.

Carlos Tavares, CEO of Stellantis, and Emmanuel Macron, President of France, at the 2022 Paris Motor Show.

Hence the comparisons. Tavares’ new salary is equivalent to the average salary of a Stellantis employee multiplied by 530. And it is the equivalent to 1,586 years of salary for a temporary employee who works on the assembly line of one of the group’s French plants, as specified The world, that neither has no profit sharing system

In general, the salary of executives at this level is directly tied to the company’s performance. “90% of my salary depends on the company’s results,” Tavares told the radio station. France Blue Lorraine Nord.and then he specified: “so that shows that the company’s results are apparently not that bad.”

The CEO himself compared himself to a mega sports star, clarifying that his remuneration was “contractual” between Stellantis and him, “like that of a footballer or a Formula One driver. If you think it is not acceptable, make a law and I will respect it,” Tavares declared, pointing to those who criticize him for his salary.

Last year, the group’s 14 brands achieved record profits of almost $20 billion, which represented growth of 11% compared to 2022.

Elon Musk’s income deserves a separate paragraph, since the American electric vehicle manufacturer Tesla asked its shareholders that, at its next meeting scheduled for June 13, re-approve a millionaire remuneration plan for its director and founder, annulled in court at the end of January.

In a regulatory filing, Tesla Chairman Robyn Denholm said the board stands by the original package and argued that the company’s “entrepreneurial spirit” has always been about taking “big risks.” for a chance at great rewards.”

Musk’s compensation plan, approved by the board in 2018 by $55.8 billionwas annulled in early 2024 by a Delaware court, which ruled on a complaint from an individual shareholder who alleged that the magnate had dictated his conditions to the board, which was not sufficiently independent.

The agreement provided for Elon Musk to receive Tesla shares based on the achievement of a series of objectives over ten years. “Elon has not been paid for any of his work for Tesla over the past six years,” Denholm wrote.