Stellantis' shareholders are now demanding that the group's former director, who was fired in December last year, pay back 175 million kroner of his salary.
Dissatisfied shareholders are demanding that fired Stellantis director Carlos Tavares pay back parts of his enormous salary amid the car group's crisis.
Shareholders at the automotive giant Stellantis are dissatisfied.
They are now demanding action regarding former CEO Carlos Tavares, who received a severance package of 175 million kroner, even though the group, which consists of 14 car brands, is in the midst of its biggest crisis to date.
The large amount is being paid even though Carlos Tavares was fired at the beginning of December last year. The salary and bonus totaling 175 million kroner will cover his work through 2024. The payment comes at a time of great challenges for the group.
Shareholder organizations such as Allianz Global Investors and Proxinvest are leading the protests. They are now calling on other shareholders to vote against the management's decision to pay the former CEO.
The vote will take place at the annual general meeting today, Tuesday, April 15, 2025.
Charles Pinel is a director at Proxinvest. He speaks critically about the situation.
"It is not acceptable to provide severance pay to a manager who led the company to a situation of failure," he said, according to Bloomberg .
The criticism of Carlos Tavares' loan does not come out of the blue. It stems from Stellantis' current difficult situation. The car giant is struggling with significant challenges on several fronts. Sales are falling sharply in important markets in both Europe and the United States.
Declining sales and share price at Stellantis
Stellantis' car deliveries within the EU fell by 17 percent at the beginning of the year, a clear sign of the problems the group is facing.
The development in the American market is also not looking positive. Here, Stellantis experienced a 12 percent drop in deliveries in the first quarter of the year. The declining sales figures are causing concern.
Investor confidence is also reflected in the stock market. Stellantis shares have fallen 35 percent in value since the beginning of the year, underscoring the seriousness of the situation.
Carlos Tavares left the position of CEO in December 2023. Since then, Chairman of the Board John Elkann has temporarily taken over the management of the large automotive group.
Stellantis is thus left without a permanent CEO at a critical time. A successor to Carlos Tavares has not yet been appointed.
The car giant's uncertain future
The lack of permanent management contributes to the uncertainty about the company's future strategy. It is unclear how Stellantis will handle declining sales and increased competition. The pressure on the group is great from several sides.
While Stellantis works to find a way through the challenges, you can read much more about the automotive world at Boosted.dk.
We cover everything from the latest models from Stellantis brands like Peugeot, Citroën and Opel to in-depth articles on technology and car design.
We also delve into how Danish customers may have been cheated out of a warranty scheme that the group has chosen to roll out for problematic engines in other markets in Europe. Read more about it here .
