Stellantis CEO Salary Versus Employee Salary

CEO. Pexels image.

Stellantis is one of the world’s leading automakers and a mobility provider, with a wide range of iconic brands under its umbrella, including Alfa Romeo, Chrysler, Citroën, Dodge, Fiat, Jeep, Peugeot, and Ram, among others. The company is formed in 2021 by merging the Italian-American conglomerate Fiat Chrysler Automobiles (FCA) and the French PSA Group.

Stellantis operates approximately 400 manufacturing facilities and R&D centers around the world, showcasing its extensive reach in the automotive industry. Its global presence spans several key markets across North America, Europe, Latin America, Asia, Africa, and the Middle East.

This article covers Stellantis CEO salary, the average employee compensation, the CEO pay ratio, as well as the growth rates.

For your information, Stellantis had approximately 258,000 employees worldwide as of the end of fiscal year 2023, according to this article – Stellantis global employees and employees by country.

All told, let’s look at Stellantis’s CEO pay!

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Definitions

To help readers understand the content better, the following terms and glossaries have been provided.

CEO Pay Ratio: The CEO pay ratio compares the salary of a company’s Chief Executive Officer (CEO) to the median salary of its employees. This ratio is often used to indicate income inequality within a company.

It is calculated by dividing the CEO’s total compensation (which can include salary, bonuses, stock options, and other financial benefits) by the median annual pay of the company’s employees. The resulting figure is expressed as a ratio, such as 150:1, indicating that the CEO earns 150 times more than the median salary of the employees.

The disclosure of the CEO pay ratio has become a requirement for publicly traded companies in some jurisdictions, aiming to increase transparency and provide stakeholders with a clearer perspective on executive compensation practices.

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Is Stellantis A Good Company To Work For?

Determining whether Stellantis is an excellent company to work for can vary based on personal career goals, values, and what one looks for in a workplace. Here are some factors to consider:

1. **Global Presence**: Working for Stellantis could offer opportunities to engage with a global team and possibly work on international projects, given its presence in more than 130 countries.

2. **Diverse Brands**: Stellantis houses a portfolio of distinguished automotive brands, including Alfa Romeo, Chrysler, Citroën, Dodge, Fiat, Jeep, Peugeot, and Ram. This diversity can provide a wide range of career paths and learning opportunities across different market segments and technologies.

3. **Innovation and Sustainability**: The company focuses on electrification, autonomous driving, and connectivity, offering a chance to work on cutting-edge automotive technologies. Their commitment to reducing the environmental impact and promoting sustainability might appeal to individuals passionate about these issues.

4. **Career Development**: As a large multinational corporation, Stellantis may offer various programs for career development, mentorship, and internal mobility, allowing employees to grow professionally within the company.

5. **Work Culture and Employee Benefits**: The work culture and benefits can vary significantly by location and department. It’s important to research and consider reviews from current and former employees on platforms like Glassdoor or LinkedIn to get a sense of the work-life balance, management support, compensation, and benefits package.

6. **Economic and Industry Challenges**: The automotive industry faces significant challenges, including economic fluctuations, supply chain disruptions, and the transition to electric vehicles. These factors can impact job security and the overall work environment.

In conclusion, whether Stellantis is an excellent company to work for depends on how well it aligns with your career aspirations, desired work culture, and interest in the automotive industry’s future. It’s advisable to conduct thorough research and, if possible, speak to current or former employees to understand the company comprehensively.

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CEO Salary

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The current CEO of Stellantis is Carlos Tavares. Carlos Tavares became the first CEO of Stellantis after the merger of PSA and FCA in 2021. Before becoming a CEO of Stellantis, he was the CEO of PSA Group.

Under his leadership, Stellantis was formed in January 2021, creating the world’s fourth-largest carmaker by sales volume.

His vision for Stellantis includes a strong push towards electrification and sustainability, aiming to adapt to the changing dynamics of the global automotive industry and the increasing demand for eco-friendly transportation solutions.

As of 2023, the CEO earned approximately €36.5 million in annual salary, up 55% over 2022 and more than double the amount in 2021.

Before the merger, the CEO of FCA N.V. earned approximately €13.3 million and €11.7 million in annnual renumeration.

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Average Employee Compensation

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According to Stellantis’ 2023 annual report, Stellantis has an average number of employees of 271,000 thorughout 2023, with total personnel cost reaching €19.1 billion.

With these numbers, Stellantis’ average employee compensation (in euros) in 2023 measured around €70,400 per annum. This figure represents year-on-year growth of 9.5% over 2022.

In 2022, Stellantis’ average employee compensation was approximately €64,300 per annum, compared to €58,500 reported in 2021, up roughgly 10% year-on-year.

The average employee compensation since 2015 has meausured around €60,900 per annum on average for the company.

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CEO Pay Ratio

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The definition of Stellantis’ CEO pay ratio is available here: CEO pay ratio.

Stellantis’ CEO pay ratio has more than doubled since 2019, reaching a staggering 518X as of 2023.

However, according to the 2023 annual report, the increase in the CEO pay ratio from 2022 to 2023 is primarily attributable to the LTI expense from the CEO Transformation Incentive 2021 – 2025.

Excluding the amount relating to the CEO Transformation Incentive 2021 – 2025 of €14,3 million would result in a CEO pay ratio of just 315.

Stellantis’ CEO pay ratio measured 298X and 365X in fiscal year 2022 and 2023, respectively. The average CEO pay ratio has measured around 337X in the last five years.

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Growth Of CEO Salary Versus Employee Salary

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Stellantis’ CEO salary has grown at a much faster rates than employee salary in most fiscal years, as depicted in the chart above.

For example, Stellantis’ CEO salary grew 55% in fiscal year 2023 compared to 9.5% for employee salary. In fiscal 2022, Stellantis’ CEO salary grew 34.3% compared to 10% for employee salary.

The average growth rate of CEO salary has maeasured around 32% since 2020, while the average figure for employee salary has measured just 5.5% during the same period.

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Conclusion

Stellantis’ CEO has obtained a much higher pay than the average employees over the last five years. The CEO pay ratio came in at 518X as of 2023, compared to 365X in 2022.

In addition, the growth of Stellantis’ CEO pay has been much higher, averaging 32% since 2020. The growth of Stellantis’ average employee compensation has measured just 5.5% during the same period, a much lower figure than the CEO.

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References and Credits

1. All financial figures presented in this article were obtained and referenced from Stellantis’ quarterly and annual reports, SEC filings, investor presentations, press releases, earnings results, etc., which are available in Stellantis Investor Relation.

2. Pexels images.

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Disclosure

References and examples such as tables, charts, and diagrams are constantly reviewed to avoid errors, but we cannot warrant the total correctness of all content.

The content in this article is for informational purposes only and is neither a recommendation nor a piece of financial advice to purchase a stock.

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