I couldn’t let this one pass by. Ford’s Alan Mulally may take home $58.3 million and Chrysler won’t “pay” Sergio Marchionne a salary for the year. But, don’t forget, Chrysler is just a division (per se) of Fiat, and he’s holding millions of shares in Fiat, and getting more every year.
- In January 2011, Sergio got 8 million shares (4 mn in Fiat and 4 mn in Fiat Industrial) that are worth around $50 million at today’s prices which are not consider top value.
- Last month, he had to sell EUR7.6 million shares of Fiat, reportedly for tax reasons,
- In addition to the private jet to shuttle between Chrysler and Fiat locations, Chrysler picked up his expenses, like apartment, cleaning and security (est. $600k).
- Expect Fiat plus Fiat Industrial to contribute double-digit million $ to his coffers for a busy year. (FI reported 2.1 million in LTI and share awards for 2011)
At least this year, the company didn’t have to cover product losses like his 2007 incident with a quarter million dollar plus Ferrari 599 GTB — I think it was a RENAULT that cut him off — LOL, just a little humor with all these big pay numbers.
Enough said. Now what about that Chrysler IPO that was imminent in 2011, no, I mean 2012, or was that 2013. WHAT, no longer imminent? Oh, well.
Comment: I know this is not significant to share price, but let’s be serious when discussing executive compensation. They both deserve millions, Mulally for saving Ford preemptively and Marchionne for mastering the financial engineering to keep Fiat and Chrysler alive. Don’t like it, don’t buy the stock. Don’t own the stock, you shouldn’t give two hoots. For a good summary of auto exec comp, if you care, a hat-tip here as usual to Automotive News.