This Tuesday, Stellantis shareholders met in a general meeting. On today’s menu: the financial boost that needed to be validated to congratulate the big boss on his great year 2023. Amount of the transaction? Around 36.5 million euros allocated in shares, retirement pensions and other bonuses. For the 2023 financial year, Carlos Tavares will currently only receive 23.5 million euros. “Indecent” according to many union representatives of the group and its subcontractors. But did shareholders have any other choice? In 2021, they refused the pay increase, before validating it in 2022 and 2023. 70% of them voted for it in 2024. Now that the solution is in place, what can we do to hope to change things? Here are some tips.
Change the law
“If you consider that this is not acceptable, make a law and modify the law and I will respect it,” Carlos Tavares declared to our colleagues from France Bleu Lorraine when they questioned him about this increase in remuneration. On social networks, elected officials reacted, announcing that they were tabling a bill aimed at limiting salaries to a gap of 1 to 20 in a company. “This is a proposal that we have been making for more than ten years. In the case of Mr. Tavares, we are talking about a difference of 1 to 1,700! This is unacceptable,” storms Matthias Tavel, La France insoumise MP for Loire-Atlantique. The latter has tabled two bills but refuses to talk about capping. “The goal is not to be punitive but to remind people that the production of wealth must be better shared. If the law is adopted, Mr. Tavares will be able to increase himself but on condition that he increases his entire base as well. It’s a virtuous circle.”
Benefits
– By adopting such a position, France regains its colors of equality and fraternity, while aligning itself with its public service, already subject to a cap on employers’ remuneration
– Nupes deputies will vibrate in the hope that the law which will be examined can bear their name.
Disadvantages
– It doesn’t have much chance of succeeding. And even if the text were voted on, it could hardly apply to Stellantis, whose head office is established in the Netherlands. “We are bringing the idea of having the same mechanism on a European scale,” says Matthias Tavel.
– Stellantis will leave France and abandon its factories in Poissy, Rennes, Sochaux and Mulhouse, or around 45,000 people. The automobile group derives 53% of its profits across the Atlantic, and 75% outside Europe.
Launch a good old long strike
If the boss of the automobile group pockets so much, it is because his contract provides for it. If we can clearly discuss the quality of Tavares as a “super boss” (talk to the workers in Rennes or Poissy, you will see), it is difficult to question his balance sheet. In 2023, Stellantis recorded a new record profit of 18.6 billion euros. But at what cost ? In the group’s factories, many employees denounce the growing pressure and competition between factories to obtain the allocation of vehicles.
Fertile ground for a good old strike, right? By paralyzing the factories, we would hit directly at the manufacturer’s wallet. “Capitalism is the law of profit. And without counter-power, it is limitless. For me, the only solution is for employees to unite to stop working. There, they will be able to show their leaders who produces the wealth,” estimates Fabrice Lerestif, departmental secretary of Force Ouvrière in Ille-et-Vilaine.
Benefits
– If the base rises, the group could be put under pressure in the face of economic losses caused by blockages. “We must mark the occasion, unite the unions, call on the European Trade Union Confederation. We must fight when it is unbearable or indecent,” repeats the head of FO.
– The strike is sometimes painful but it unites, it brings people together. And it allows you to get together with friends around a fire with a sandwich and a can.
Disadvantages
– We are never sure of winning. And Carlos Tavares’ remuneration will still be paid. The same cannot be said of the striking employees, however.
– It will be long. Faced with a strike, leaders often adopt a patient position, just to test the resistance and motivation of the troops. And that hurts the finances of the strikers.
Corrupt the board of directors
They have the key. The 11 members of the Stellantis board of directors are in the best position to assess whether or not they can grant a little pocket money to the big boss of the automobile giant. The problem is that they generally act in their common interest, voting in favor of each other’s pay increases, while waiting for it to be their turn. To better understand who we are talking about, here is a short CV of the members of the famous CA.
- John Elkann is heir to the Agnelli family, which founded Fiat and is one of the biggest European fortunes. Executive Chairman of Stellantis, he received a salary of 4.8 million euros in 2023.
- Robert Peugeot, heir to the French manufacturer’s family, is ranked 22nd in France in 2023 according to Challenges.
- Henri de Castries. Henri de La Croix de Castries, his full name, comes from a high family of the French nobility. A graduate of ENA, he headed the Axa insurance group for a long time, where he was one of the highest paid French managers.
- Fiona Clare Cicconi. Trained within the General Electric group, the London-born also worked at Cisco before becoming executive vice-president and director of human resources at AstraZeneca, a British pharmaceutical giant.
- Nicolas Dufourcq. Son of a former secretary of state and an ambassador, he is a graduate of HEC and ENA. He notably worked for France Télécom and chaired the Wanadoo company before working for Cap Gémini. He has been director of the Public Investment Bank since 2013.
- Ann Frances Godbehere has spent her entire career in investment companies, initially in Canada, where she was born. She also sat on several boards of directors of multinationals such as the oil company Shell and British American Tobacco.
- Wan Ling Martello worked for a long time for the American giant Walmart where she held important management positions. Former financial director of Nestlé, she became its executive vice-president in 2012. She also sits on the board of directors of Alibaba and the Uber group.
- Benoît Ribadeau-Dumas is also a graduate of ENA. After a career at Thalès, he joined as chief of staff to Edouard Philippe, then French Prime Minister. Today he holds great positions at Exor, a huge investment fund controlled by the Agnelli family.
- Jacques de Saint-Exupéry. This pure product of the PSA company is today the secretary of the Works Council of the French automobile group.
- Claudia Parzani. The latest arrival at the CA heads Borsa Italiana, the main Italian stock exchange.
Benefits
– The Stellantis group knows it is being watched closely and could have decided to “mark the occasion” by positioning itself against this increase deemed indecent.
– Carlos Tavares will probably leave.
Disadvantages
– Um, did you see the list of people named above?
– Carlos Tavares will probably leave.