Fiat has submitted its fiscal year-end financials, reports the Detroit Free Press. According to the numbers, CEO Sergio Marchionne was compensated to the tune of $18.9 million. That involves salary and stock options until 2015.
Stock options taken with salary
Fiat, which owns 58.5 percent of Chrysler, revealed that Sergio Marchionne’s executive income was $3.2 million, which in itself did not rank among the industry’s most compensated executives. Marchionne’s stock options outpaced his salary considerably at $15.68 million.
Dr. Giuliano Noci is a Marketing professor who spoke to Bloomberg. He explained that a business will pay in stock as the executive has just as much risk as the company does.
” Marchionne’s salary is in line with the industry’s top managers, and he shares company’s risk with the stock payment,” said Noci. “Industry wide speaking, the difference between top managers’ salary and workers is impressive.”
On February 22, 2012, Fiat verified rumors from Bloomberg that said Sergio Marchionne was going to get over 7 million shares. As long as Marchionne stays CEO, he will continue to get a 3rd of the shares with final payment on February 22, 2015. This year’s stock payment can be exercised any time between 2012 and 2015 if Marchionne wants to.
Fiat Industrial SpA also needs to pay Sergio Marchionne for fiscal 2011 as he was a chairman. It is unknown what this pay will be.
Chapter 11 just taking place
Marchionne did not get any payment for the year from Chrysler as he was worried about public perception. Chrysler is not doing very well as it has just gotten itself out of a June 2009 Chapter 11 bankruptcy. When the business got the bankruptcy, it received loans from both the United States and Canadian governments to stay afloat, although it has paid all the loans back.
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