Stellantis' new CEO Filosa set to earn up to US$23mil a year

MILAN: Stellantis' new CEO Antonio Filosa will earn at least US$4 million (RM16.92mil) annually in his first two years at the helm, rising to up to US$23 million (RM97.31mil) a year from 2028, including bonuses, a document showed, although his remuneration will be lower than predecessor Carlos Tavares.

Filosa officially becomes CEO of the owner of brands such as Chrysler, Peugeot and Jeep at the end of this month, tasked with turning around the carmaker's performance and recovering lost US market share.

He will receive an annual base pay of US$1.8 million (RM7.62mil), a company document issued ahead of a July 18 extraordinary general meeting showed, just below the US$2.3 million (RM9.73mil) granted to his predecessor Tavares.

On top of his starting salary, Filosa will pocket annual bonuses worth up to 400% of his base pay, based on the achievement of financial and business plan objectives set out by the company.

Filosa, formerly Stellantis' North American chief, will also be granted shares as long-term incentives (LTI), based on the company's performance, starting from up to 500% of his salary this year and up to a maximum of 780% from 2027.

Until the potential LTIs are paid, in 2028, the company will provide the top manager a cash award of US$1.2 million (RM5.08mil) each year.

Tavares, who abruptly resigned as CEO last December due to disagreements with the board over strategy, pocketed a final €35 million (RM168.7mil) compensation package, despite a dramatic plunge in sales and profit and broken relationships with suppliers, dealers and investors.

In 2023, when Stellantis reported record results, Tavares earned a total of €36.5 million (RM176.03mil).

Filosa will also benefit from the company's U.S. health care and retirement plans and tax equalisation benefits, as well as having access to other fringe benefits such as the personal use of the company's aircraft and vehicles, personal security and annual medical check-ups.

Filosa's term will be for five years, "to ensure leadership stability and maximise the ability of the company to respond effectively to profound and prolonged industry change", according to the document.

Filosa will be appointed an executive board member at the July 18 EGM.

Tavares was also appointed CEO for five years but left after just under four years.