PARIS — PSA Group CEO Carlos Tavares plans to reduce his fixed compensation by 35 percent this year through a reduction in his stock holdings by 50,000 shares, joining other automotive executives who have taken pay cuts in solidarity with employees who have been idled by the coronavirus crisis.
The other three members of PSA’s management board -- Europe chief Maxime Picat, Opel CEO Michael Lohscheller and Olivier Bourget, head of programs and strategy -- will reduce their compensation by 25 percent this year, PSA said Wednesday in a news release.
In addition, the group’s top 100 managers are reducing their share allocation rights by an average of 21 percent, PSA said.
PSA did not attach a monetary figures to Tavares' reduction, but at a share price of 12.37 euros as of Wednesday afternoon, 50,000 shares would be worth around 600,000 euros ($652,000).
Tavares received a total of 7.6 million euros in fixed and variable compensation in 2019, including 130,000 shares of PSA stock, according to PSA’s annual report. Of that, his fixed compensation was worth 1.5 million euros.
Last year, Picat received 2.6 million euros, Lohscheller 1.9 million euros and Bourget 1.68 million euros.
In all, PSA management is relinquishing 335,000 shares with a total value of 4 million euros, the automaker said. The money will go to the PSA Foundation, which will fund mobility issues related to the coronavirus.
Other top automotive executives who have seen their compensation cut during the coronavirus crisis include Fiat Chrysler CEO Mike Manley, who is working with Tavares on a merger of the two automakers; Ola Kallenius of Daimler and Mary Barra of GM.
