Stelantis CEO Carlos Tavares on Wednesday took a bullish stance in the US market despite growing fears of a recession, as the carmaker’s shareholders voted against a 2021 compensation package for top executives.
Stelantis Chief Executive Carlos Tavares on Wednesday took a bullish stance in the US market despite rising fears of a recession, as the carmaker’s shareholders voted against a 2021 compensation package for top executives.
Speaking at the carmaker’s annual shareholders meeting, Tavares said Stelantis was reaffirming its forecast for double-digit operating income margins this year, adding that to North America, particularly in its highly profitable US business. Expected sales should increase by 3%.
The company, whose brands include Peugeot, Fiat, Opel, and Maserati, reported above-target adjusted operating profit margins of 11.8% last year, compared with a record 16.3% in North America, where it makes highly profitable Jeep and Ram pickup trucks. Sells models. ,
Despite these results, more than 52% of Stelantis shareholders voted at the meeting against the 2021 executive remuneration report for senior managers, including Tavares.
However, based on legislation in the Netherlands, where Stelantis is located, the vote will not affect the planned compensation for the previous year.
“Today’s vote on remuneration is only advisory, so the remuneration report for 2021 will be implemented,” a source close to the matter told Reuters.
Chairman John Elkann said Stelantis would take into account the shareholder vote, which he described as a recommendation.
“It is our belief as the Board that rewarding based on merit, based on performance criteria, is a fundamental element of our policy,” Alcan told shareholders. “We will consider this vote, which is, again, a recommendation”.
French state investor BPIFrance, which owns a 6.15% stake in Stelantis, was among those who voted against a 2021 salary package, which added up to about 19 million euros ($20.6 million), plus some There was a stock package of an additional 32 million euros and a long time. -Compensation of about 25 million euros.
French Finance Minister Bruno Le Maire said Tavares’ package was “excessive”, but added that France cannot limit executive pay on its own for fear of losing top corporate talent.
“This salary is exorbitant and should prompt us to think about the level of CEO pay compared to staff pay, but we must do it at the European level because otherwise we will lose out on all the good CEOs who are able to deliver strong results. capable,” he said. said on France 5 television.
Stellantis said later on Wednesday that it was looking into the feedback resulting from the advisory vote on the remuneration report and that the 2022 remuneration report would explain how this vote was taken into account.
Tavares also said that the company expects sales growth or stagnant growth in all of its key markets in 2022 and reiterated a forecast for positive cash flow later this year.
Light vehicle sales in the United States fell 17% in the first quarter, as global chip shortages and the Ukraine crisis squeezed inventory and rising prices drove less affluent buyers out of the market.
($1 = 0.9206 Euro)
(Additional reporting by Geert de Klerk; Writing by Nick Carey; Editing by Jan Harvey, Bill Burcrot, Mike Harrison and Bernard Orr)
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