Dismissed by Stellantis, Carlos Tavares leaves with a bonus costing tens of millions of euros

The Stellantis automobile group announced on Sunday the resignation “with immediate effect” of its emblematic boss Carlos Tavares. Judging that he was not completely unworthy, the board of directors therefore did not oppose a departure with high compensation.

The amount of compensation for Carlos Tavares, pushed out by Stellantis, amounts to tens of millions of euros, franceinfo learned on Monday, December 2, from members of the board of directors. The emblematic boss of the Franco-Italian-American automobile group was forced to resign with immediate effect under pressure from the exceptional board of directors meeting on Sunday evening. The 66-year-old CEO was to keep the reins of Stellantis for a year before retiring, but “diverging views” got the better of him. He is accused of management considered too brutal and excessive pressure on the teams, despite warnings from the board of directors. According to several sources, the board of directors recorded a form of denial from the manager.

Carlos Tavares negotiated a significant bonus in light of the astronomical remuneration he received. He was in fact the best paid boss in the automobile industry, with 36.5 million euros for the year 2023. The board of directors certainly dismissed him, but he praised the capacity which had been the his role in turning around the Stellantis group over the past ten years. Judging that he was not completely unworthy, the council therefore did not oppose a departure with high compensation.

Carlos Tavares was known to be a difficult boss. For a long time, his arrogance and his brutal management were praised as much as his genius. We admired the way in which he had turned around the PSA Peugeot Citroen group, when the firm was on the brink of collapse, to make it one of the most successful global manufacturers, thanks in particular to the acquisition of Opel, but also the merger with Fiat. Chrysler. But after prosperous years, the financial situation of Stellantis deteriorated to such an extent that last October, there was a warning on the results, sowing doubt among shareholders.

The entire automotive sector is suffering. There is fierce competition from the Chinese, the shift towards electric, the drop in car sales in Europe, but Stellantis was suffering more than its competitors. Its stock price fell, the group lost ground on the American market, with major strikes. Carlos Tavares was trying at all costs to straighten the handle. Just last week he was in Spain and the Middle East to raise funds. He worked like hell, even if it meant pressurizing his teams

Carlos Tavares' successor is not yet known. He will be appointed during the first half of 2025. In the meantime, John Elkann, heir to the Agnelli family, the group's largest shareholder, will head a new temporary executive committee.