Pay For Fiat's Marchionne Down In 2010 To $4.8M
Fiat SpA Chief Executive Officer Sergio Marchionne received $4.77 million (3.47 million euro) in total compensation last year, according to the Italian automaker's annual report.
Marchionne is also CEO of partner Chrysler Group LLC, which, as a private company, is not required to disclose executive salaries. Spokesman Gualberto Ranieri said Marchionne gets a small stipend as a member of Chrysler's board but does not draw a salary as chief executive.
"The man works exceptionally hard, crisscrossing the globe, managing two companies," said analyst James Bell of Kelley Blue Book in Irvine, Calif. "He is pushing his philosophies and work ethic into Chrysler and employees speak highly of him."
Ranieri noted Marchionne's pay from Fiat will likely continue to lag those of top executives at Ford Motor Co. and General Motors Co., which have yet to disclose 2010 compensation figures, reported The Detroit News.
In 2009, Ford CEO Alan Mulally's compensation totaled $17.9 million, and Marchionne earned about $6 million from Fiat.
GM has said CEO Dan Akerson will be paid about $9 million annually in total compensation, the same as his predecessor, Ed Whitacre Jr.
There is a $500,000 salary cap on Chrysler's top 25 executives as one of the conditions of its government bailout. Fiat executives who have a management role with Chrysler as well can continue to be paid by Fiat.
In Italy, Marchionne earned a base salary of $4.2 million (3.05 million euro) last year, unchanged from 2009. But his compensation declined overall, in part because he earned a $1.87 million bonus in 2009, but was not paid a bonus in 2010.
In 2006, the Fiat board approved an eight-year stock option plan for Marchionne, including 5 million in options that could be redeemed over four years at 13.37 euro if performance targets were met.
Marchionne started 2010 with 19.42 million options, but many expired and he ended the year with 16.82 million. He has until November 2016 to exercise them at an average price of 9.09 euro, higher than today's trading price of about 7 euro.
Marchionne's term as CEO of Fiat expires in 2012. He has said he will not continue to hold the top job at both automakers indefinitely but has not said which set of responsibilities he plans to give up.
Chrysler recently provided performance awards to its workforce: $750 on average for unionized hourly employees and $10,000 on average to salaried employees. The top 50 earners did not receive a bonus.
Chrysler lost $652 million in 2010, but made $763 million on an operating basis.
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