Chrysler CEO Switches Hats, Earns $19 Million from Fiat
Were you worried about Chrysler boss Sergio Marchionne going hungry after not collecting a paycheck from Chrysler in 2011? Well, you can breathe a sigh of relief. It turns out that while Marchionne didn't collect on his 2011 salary and bonus from Chrysler, he did earn $19 million owed to him by Fiat, which he also oversees. Marchionne collected $3.2 million in base salary from Fiat and was also on the receiving end of a stock-related stipend to the tune of $15.7 million. “Marchionne’s salary is in line with the industry’s top managers, and he shares company’s risk with the stock payment,” said Giuliano Noci, a marketing professor at Milan Polytechnic said to Bloomberg. “Industrywide speaking, the difference between top managers’ salary and workers is impressive.” Back on February 22, Fiat S.p.A. said it bestowed stock grants onto Marchionne worth seven million shares. Marchionne can begin using them this year all the way through 2015. One-third of the shares will be doled out to Marchionne every year he remains in charge of Fiat. The final payment is set to enter Marchionne's possession on February 22, 2015, but only if he is still with the company.Besides overseeing Fiat and Chrysler, Marchionne is also responsible for Fiat Industrial which manufactures agricultural and construction equipment. No word yet on how much Marchionne received from Fiat Industrial yet. The cost to keep Marchionne on board at Chrysler-Fiat may seem like a steal when compared to other top executives in the industry. Ford CEO Alan Mulally was awarded $58.3 million in stock options while Volkswagen boss Martin Winterkorn saw his bank account grow by $22.8 million in 2011. Winterkorn closed out 2011 as the highest-paid CEO in the automotive industry. General Motors CEO Dan Akerson, who has to have his salary approved by the special pay master in the Obama administration, did not receive a cash bonus for 2011. Oddly enough though, GM turned a profit for the record book last year as it once again became the world's largest automaker. Source: Bloomberg
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