Two proxy advisory firms have split over whether shareholders should vote to approve Stellantis CEO Carlos Tavares’ 2022 compensation.
Institutional Shareholder Services (ISS) has recommended a vote in favor, while Glass Lewis said shareholders should vote against it, according to reports seen by Reuters on Tuesday.
Tavares’ total compensation for 2022 was almost 23.5 million euros ($25.8 million), including long-term compensation. Stellantis said his cash and vested equity awards was 14.9 million euros ($16.3 million), 13 percent lower than the previous year.
In its report, ISS said the proposed remuneration was in line with market practice, but raised concerns including for a “lack of clarity regarding the key perquisites allocated to both the CEO and chairman.”
ISS said concerns also remained about some incentives introduced in 2021. Despite no payout in the past fiscal year, if performance targets were achieved, they could lead to a 40 million euro payout, at current market value, on top of the CEO’s existing pay package.
It “may be considered excessive once vested,” it said.
Glass Lewis said Tavares’ “total pay opportunity and realized pay appear to exceed most European peers.”
Glass Lewis cited some improvements in disclosures of Stellantis’ executive compensation, but said shareholders may rightfully expect “further, more comprehensive improvements” to that process.
A Stellantis spokeswoman declined to comment.
The executive remuneration package for 2021, which prompted criticism from trade unions and politicians, especially in France, was rejected by over 52 percent of Stellantis investors in a consultative vote at last year’s annual general meeting.
The shareholder votes on executive compensation are advisory and not binding.
The group will hold its meeting to approve its 2022 results on April 13, with investors called to take part in an advisory vote on the group’s new remuneration package.
