France Complains About 91% Pay Hike for PSA’s Tavares

The French government’s representatives on the board of PSA Peugeot Citroen have complained about last year’s 91% jump in compensation paid to CEO Carlos Tavares, according to Les Echos, which cites no sources.

Tavares stepped into the CEO job two years ago. Since then he has led a spectacular financial turnaround at PSA. Last year the company beat its performance targets by posting a €1.2 billion ($1.3 billion) net profit, its first after four years of losses.

PSA’s annual report indicates Tavares earned €5.24 million in salary and other compensation last year compared with €2.75 million in 2014. Les Echos says the French government wants all companies in which it holds a minority stake to reduce payouts to its top executives by 30%. France holds a 14% stake in the carmaker.

PSA's vehicle sales advanced 1% to 2.97 million vehicles. But revenue climbed 6% to nearly €55 billion, and operating income zoomed to €2 billion from €124 million in 2014. The company also has slashed its breakeven sales point to 1.6 million units from 2.6 million in 2013.