Stellantis Carlos Tavares pay increase

According to a front page article in the Tuesday Wall Street Journal, when Carlos Tavares went from being CEO of relatively small Peugeot Auto to vastly bigger Stellantis, he was given a 70% increase in pay.

The heads of GM and Ford have gotten far less than a 70% pay raise, but when the 3 CEO pay increases are averaged, Carlos Tavares “whopper” of a pay increase raises the average far above what average hourly paid workers in the three automakers have been given.

This had become vocal issue in negotiating, that I was unaware of.

As previously posted here, Stellantis’ more than $14,000 “profit sharing” checks to its hourly workers are far higher than GM or Ford.

While I am disturbed by how much high level execs make in general.
Even if he makes the 24.8 million they say, there are over 270k employees.
Distributing all of his pay only increases their pay by 91 dollars a year.
the 14k checks they cut, if it went to all employee's is 3.8 billon dollars.
I don't disagree profits should be shared with employee's and if they can get their 40 percent pay bump more power to them.
but it will drive car prices up and they will be out of jobs soon too. because the company won't just suck up the price diff.
It says on line they average pay is 29 bucks an hour. They want it to increase to 40.6 an hour over 4 years.
30 people on each line to build a car.
18 to 35 hours for 1 car
call it 18 hours
adds 22k to each car on year 4.
will be interesting to see how it plays out.

So what? You don't give any dollar amounts so the point is moot. When things like that are done is is specifically because someone is trying to agitate to the greatest extent possible.

If you give these workers a 40% raise are you going to get 40 more out of them? Nope. Stellantis is making record profits, you figure the CEO had more to do with that then the line workers? Yep.

My solution would be to fire them all, move production to a non-union area and let them all eat crap for lunch.

Their vehicles are already way overpriced. They need to be focused on getting prices back to 2019 levels, not seeing how much more they can rake their customers over the coals

This will only increase automation and cut more jobs in the long run, there are teams of high priced engineers focusing on automating everything...

I agree it will increase automation.

I don't know about him but if the CEO of ford gave every single penny he makes in a year to all the other employees of ford they would get $121 a year, I think if every employee chips in $2 a week for a good CEO it is quite worth their while, if they kept that $2 a week for themselves there would be no more ford (I would be OK with that but I don't think those employees would be).

Then they will be right back to griping that they can't afford the cars they build and be demanding more money. A good CEO knows how to make this quarter million employees thing work and is worth $24 million.

What is the math on employee pay when adding in the profit sharing? Is it similar to what the ceos are seeing when that is factored in?

Seems to me he earned it by vastly increasing the value of the company.

The CEO of Stellantis (Peugeot, Opel, Fiat, Chrysler) has been racking up successes since he joined the French automaker PSA in 2014

That’s not a pay increase

That’s a job change.

Went from one “relatively small company” to a “vastly bigger” company.

He changed jobs.

How should an auto company CEO work to earn his pay.

Put in 14 hours nearly every day.
Take up smoking again using nicotine as a brain altering drug.
Neglect your wife to the point she testifies under oath: My husband has a mistress - Her name is Chrysler.
Get cancer, but keep it secret by going to a Swiss hospital, keep putting in long hours.
Die

He is not (yet) risen above Sergio effort level,
so Tavares should apologize,
give back 90% of his pay,
and resign.