Fiat CEO Sergio Marchionne Gets a Pay Cut for 2013
While Alan Mulally at Ford is pulling in nearly $14 million in compensation for his position as CEO, Fiat Chrysler‘s (FIATY.PK) CEO Sergio Marchionne will be making just over a third of that — 3.6 million euros, or $5 million, including salary, bonuses, and incentives. It’s down from the 4.5 million euros that he made in 2012.
Fiat said earlier this week that Marchionne had a fixed salary of 2.3 million euros and a 1.3 million euro bonus for reaching certain performance targets earlier this week, though it didn’t elaborate on what those targets used to determine Marchionne’s bonuses were.
Marchionne was also awarded the right to receive 2.3 million Fiat shares, which are currently worth around $25 million at market prices, though he has yet to exercise that right. Interestingly, Marchionne didn’t take any compensation for his role as the CEO of Chrysler, despite Fiat’s merger with Chrysler Group last year, though he was given benefits and stock awards worth $307,989 for his role.
Marchionne will remain the CEO of Fiat Chrysler Automobiles for at least the next three years; he didn’t use any of his stock options during 2013, Reuters noted.
Marchionne also made 2.1 million euros for his role as executive chair of tractor and trucks maker CNH Industrial; he was given the role after a merger of Fiat Industrial and its CNH unit last year.
Fiat’s trading profit came in at 3.39 billion euros for 2013, a reduction from the 3.54 billion that it made during the year prior. Latin America was a solid drag on Fiat’s performance, and the company scrapped its dividend on 2013 earnings to preserve cash after taking control of Chrysler, Reuters reported.
This year should prove to be fruitful for Fiat as it’s seeing a revival in Maserati, bolstering its new Jeep and Alfa Romeo assets, and giving the Chrysler brand some needed attention. Additionally, its EcoDiesel Ram 1500 is proving to be exceptionally popular, and Ferrari is showing promise too – though when did it not?