President Emanuel Macron has called on the EU-wide framework to limit “offensive” executive pay following anger in France over a € 19.1 million package to carmaker Stellantis.
Criticism of the award for Carlos Tavares came when Macron entered the last weekend of the French election campaign in an attempt to fend off far-right candidate Marin Le Pen, who also condemned the salary of the head of the French-Italian company.
In the run-up to the April 24 presidential election round, the issue of executive pay has crept into a campaign dominated by voter concerns about high energy costs and broader cost of living issues.
Trade unions and shareholders have opposed the payment for Tavares, the former head of French Peugeot maker PSA, which merged with Italian Fiat Chrysler last year. The Portuguese manager will collect the million-euro package for 2021 even though most investors have voted resist Stalantis’ salary plan for its senior executives.
Macron called Tavares’ pay package “shocking and exaggerated” on Friday and said a “struggle” to ensure non-offensive pay levels should be conducted at EU level.
“At some point we need to deploy ceilings and bring in a European-level governance structure that makes things acceptable, otherwise at some point the company will explode,” Macron told Radio Franceinfo. “People can not struggle with the cost of living and see sums of this kind.”
“Of course it’s shocking,” Penn told BFM TV when asked about the paid package. “It’s even more shocking when it’s bosses of companies getting into trouble. It happens quite a lot.”
Tagged as “president of the rich” by political rivals, Macron, a former banker who came to power in 2017 in a pro-business platform, said he was in favor of creating wealth and “freedoms” for companies, but said the Stalantis pay plans were “astronomical”.
He said France could also look at ways to allow employees to benefit more from company profits through stock plans.
Le Pen has run a heavy campaign in recent months on issues such as Like food inflation and high fuel prices, Which have risen even more since Russia’s invasion of Ukraine. Her emphasis on the cost of living, away from her party’s long-standing focus on immigration issues that still form the core of its manifesto, caught voters.
Polls put Macron on about 53 percent of the vote in the contest phase, with Le Pen lowering him by 47 percent.
Stellantis is incorporated in the Netherlands, meaning the French government has little control over its governance rules, although state-owned investment bank Bpifrance, the carmaker’s fourth-largest shareholder, has voted against the pay scheme.
PSA and its car loan arm were forced to bail out by the French government in 2012 with state-backed loans following a prolonged slump in the market, though that was before Tavares, a former Brno executive, joined the group in 2014.
“Stalantis mentions that under the leadership of Carlos Tavares, in less than eight years, Groupe PSA has moved from a state of near-bankruptcy to the rank of a leading company in its sector on a global scale,” the company said in a statement.
The world’s fourth-largest carmaker, which reported last year’s record earnings and margins, said it would take into account the non – binding vote against its 2022 plans, though did not elaborate on how.
Macron urges EU-wide executive pay curbs amid campaign battle with Le Pen Source link Macron urges EU-wide executive pay curbs amid campaign battle with Le Pen