The boss of PSA, Carlos Tavares, the 23 February 2018 in Mulhouse, france (Photo by SEBASTIEN BOZON. AFP)
The boss of PSA (PA:PEUP) Carlos Tavares will touch a compensation extraordinary compensation of one million euros, related to the implementation of the turnaround plan for its German subsidiary Opel, according to the reference document of the automotive group consulted Friday by AFP.
This award allows Mr. Tavares bringing his total earnings to € 6.7 million in respect of the year 2017, compared to 4.7 million in 2016 and $ 5.2 million in 2015.
The publication of these regulatory information, available on the group’s website, comes at a time when the subsidiary Opel/Vauxhall, which was acquired in the summer of 2017, has announced a voluntary redundancy plan for its German workers.
The mark to the flash loses money chronically for the last twenty years. Last year, it represented a current operating loss of 179 million euros from its integration in the accounts of PSA on the 1st August.
According to the document of reference of the PSA, a special remuneration of one million euros will be allocated to Mr Tavares for “the development and implementation of the turnaround plan for Opel Vauxhall”in.
This premium is linked to the challenges of the acquisition of Opel/Vauxhall, in terms of the change of dimension of the group, and on the need to remedy the situation of Opel as quickly as possible,” said a spokesman for the group contacted by AFP.
“The supervisory board had asked Carlos Tavares to work in the 100 days following the +closing+ (the conclusion, editor’s NOTE) of the operation on a clear work around plan, with goals of returning to a positive situation”, he stressed.
The premiums related to an acquisition are common in the business world.
The annual compensation of 6.7 million euros to Mr. Tavares in the title of 2017 is divided into a fixed part 1.3 million, a variable portion of $ 2.4 million, the allocation of shares “performance” (of the 130,000 shares valued at about 2 million euros), and the premium related to Opel for 1 million.