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Macron calls for EU cap on 'shocking' executive remunerations

French President Emmanuel Macron, campaigning in what many commentators predict will be a tight duel in presidential elections this month against far-right candidate Marine Le Pen, has said he is in favour of an EU-wide ceiling for top executives’ pay after it was revealed that Carlos Tavares, head of French carmaker PSA, was handed 19 million euros in remuneration last year after its merger with Italian-US rival Fiat Chrysler.

La rédaction de Mediapart

This article is freely available.

Emmanuel Macron will push for a cap on excessive executive pay should he be re-elected president after he described as “shocking and excessive” the 19-million-euro pay packet handed to the head of carmaker Stellantis, reports The Guardian.

Macron, who is campaigning in the run-up to the final vote for the French presidency on April 24th against far-right candidate Marine Le Pen, told France Info radio that he was in favour of an EU-wide ceiling for top executives’ pay.

The multimillion-pound payout handed last year to chief executive Carlos Tavares, when French carmaker PSA merged with Italian-US rival Fiat Chrysler to form Stellantis, one of the world’s largest carmakers, has emerged as a prominent issue in the election.

Macron and Le Pen are attempting to woo the 7.7 million people who voted in the first round for left-wing candidate Jean-Luc Mélenchon, who has described the final run-off as “a choice between two evils”.

A recent poll for France 24 showed 34% of Melenchon voters saying they would back Macron against 30% for Le Pen, while 36% were undecided.

“We need to fight at a European level so that remuneration can’t be excessive,” Macron said. “We need to set ceilings and have governance for Europe that make these things acceptable. If not, society will explode at any given moment.

“People can’t be facing purchasing power problems … and then see these sorts of sums.”

Beyond his base salary of 2 million euros, Tavares is to receive 7.5 millon euros in performance-based pay, 2.4 million euros in retirement contributions and a 1.7-million-euro bonus related to the success of the merger. In addition, he will also receive 5.6-million euros-worth of company shares, according to Stellantis.

Read more of this report from The Guardian.