A “bonus” of over 100 million euros. That is the amount that Carlos Tavares has received as a performance-based reward over his four years leading Stellantis, during which the group distributed 23 billion to shareholders
through share buybacks and dividends. For the past four years, the Portuguese manager has consistently been content with a "modest" fixed compensation of two million per year, which equates to approximately eight million in total. The bulk of his earnings came from variable compensation, approximately 106 million between 2021 and 2024 (including a 12-million severance package), based on the group’s performance, for a total of 114 million. Stellantis considers eight parameters while determining the yearly CEO bonus. The group's industrial cash flow and operating income, which are both associated with profitability, are given a preponderant weight (65%) in the calculation's results. As for the long-term incentive plan, the criteria for awarding stock-based bonuses to the company’s top executives are three: fleet electrification (30% weight), synergies achieved over three years (40%), and total shareholder return comparison (30%). This is the sum of dividends, buybacks, and stock increases compared to the similar performance of Stellantis' competitors. Given these mechanisms, it is simpler to see why Tavares has decided to accelerate cost-cutting, car price increases, and dividends.