Chrysler CEO Sergio Marchionne would have been subject to federal review if he’d taken an income in 2011, notes numerous sources. So he determined it would be best not to do so. Chrysler compensated him no salary or stock options last year, unlike Fiat, which compensated their CEO an undisclosed amount in both.
Fiat owns over half of Chrysler
A report was also filed by Fiat on Tues about the company’s financial info. It is known that Sergio Marchionne got paid by the company, but the report did not say how much he got compensated. Fiat paid $4.5 million in 2010, which was the same year that he got $600,000 in stock and other awards from Chrysler without salary or bonuses. Fiat owns 58.5 percent of Chrysler.
Payment for other CEOs
Last year, Ford CEO Mulally received $26.5 million on payment. The year before, he was given 2.85 million shares of Ford stock. The stock is worth $34.5 million currently, according to the Free Press. Seeing these numbers makes Marchionne’s lack of 2012 salary even more surprising.
CEO Dan Akerson of GM got $5.3 million in stock compensation — $2 million was restricted — and earned $1.7 million in total salary.
Because Ford did not accept automotive bailout dollars from the federal government, the automaker’s payment practices did not fall under review by the U.S. Treasury. If Marchionne had been compensated in 2011, his total income and compensation would have been reviewed by treasury officials. Government officials would have paid close attention to the manner of compensation, particularly as it might have related to Chrysler’s 2009 emergency Chapter 11 bankruptcy.
Paying back bailout funds
Marchionne explained that Chrysler and Fiat are both going to stay on course now that they have paid all automotive bailout loans from the United States and Canadian government back. The last payment, according to the Free Press, was paid in May of last year.
“We’re going to remain competitive, but I think the industry itself has learned how to be much more cautious,” he said. “We intend to follow that trend, and I don’t think we should be breaking with what I consider to be a … institutionalized trend today in the marketplace.”
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