UPDATE: Fiat CEO Earned EUR14.5 Million In Salary, Stock Grants For 2011
March 15 2012 - 3:34PM
Dow Jones News
Fiat SpA's (F.MI, FIATY) Chief Executive Sergio Marchionne
received a total compensation valued at around EUR14.5 million
($18.9 million) last year, mostly in stock grants.
Marchionne's remuneration includes a base salary of EUR2.45
million for 2011, the company said in a report on compensations
posted on its website. Fiat's CEO, who was appointed to lead the
Italian auto maker in 2004, has also been granted 4 million shares
in both Fiat and Fiat Industrial SpA (FI.MI), which was spun off
into a separately listed unit in early 2011. The stock grants have
a fair value of about EUR12 million and became fully vested on Jan
1, 2012.
Marchionne received a EUR3.47 million base salary in 2010, when
it also included Fiat Industrial's contribution.
Fiat's report also showed that at the end of 2011 Marchionne had
16.9 million stock options, the result of two incentive schemes.
The bulk of the options have a trigger price of EUR6.58 a share
while some have a price of EUR13.37, according to the company. Fiat
shares closed up 0.5% Thursday at EUR4.84.
Chairman John Elkann received a salary of EUR1.345 million, and
Luca Cordero di Montezemolo, Fiat's former chairman and now a board
member as well head of its Ferrari division, earned a base salary
of EUR5.552 million.
Marchionne, who's also CEO of Chrysler Group, in 2011 declined a
salary or bonus for the second year in a row from the U.S. auto
maker he has led since 2009.
Fiat took control of Chrysler during its bankruptcy and now owns
58.5% of its stock.
For 2011, Fiat posted double-digit increases in its results due
to its U.S. partner's contribution. Net profit hit EUR1.7 billion,
exceeding analysts' expectations, on revenue of EUR59.6
billion.
Marchionne's decision to bypass any compensation from Chrysler
stands in contrast to Ford Motor Co. (F) CEO Alan Mulally, who
officially netted $34.5 million after stock awards granted three
years ago became fully vested in March.
Under his direction, Ford rebounded from a record $14.6 billion
loss in 2008 to a $2.7 billion profit in 2009, the year for which
he received the stock grant.
General Motors Co. (GM) CEO Dan Akerson received $2.5 million in
total compensation for 2010, according to GM's April 2011 proxy
statement. Akerson received a salary of $566,667 and stock awards
valued at $1,766,664.
Top executives' compensations and bonuses have been in the
spotlight in Europe and the U.S. in recent years, as leading banks
and auto makers went through costly bailouts.
"Today's news on Fiat managers' compensations are just amazing,"
said Stefano Fassina, economic policy spokesman for Italy's
opposition Democratic Party.
-By Giada Zampano and Rosario Murgida, Dow Jones Newswires, and
Rosario Murgida of MF-Dow Jones, ; +39 06 69766920;
djitaly@dowjones.com