In 2011, Fiat CEO Sergio Marchionne got a compensation package that amounts to 14.5 million euros ($19 million), mostly in stock grants. A filing released last Thursday show that this payment included a salary of 2.45 million euros from Fiat. In addition, he got stock-related remuneration which had a "fair value" of 12.01 million euros.
Giuliano Noci, a marketing professor at Milan Polytechnic, said that his salary is in line with the industry's top managers and that he shares company's risk with the stock payment. Noci said that in the industry, there is a great difference between the salaries of the top managers and the workers. In 2011, no compensation was given to Marchionne as Chrysler’s chairman and CEO.
But then, he also serves as the chairman of Fiat Industrial S.p.A., a truckmaking unit that Fiat spun off in 2011. So far, Fiat Industrial’s salary wasn’t revealed yet. Ford gave $58.3 million in stock as a reward to Chief Executive Officer Alan Mulally for turning around the company in 2011.
Meanwhile, Volkswagen CEO Martin Winterkorn earned 17.5 million euros last year, giving him the title as the best-paid CEO in the German benchmark DAX Index. Winterkorn had led Volkswagen to achieve a record profit in 2011. On the other hand, Dan Akerson (the CEO of General Motors) revealed on Jan. 10 that he won’t receive a cash bonus for 2011 despite the automaker achieving a record profit and getting back the recognition as world’s largest automaker.
Akerson’s pay is subject to the approval of the special pay master of the Obama administration. In a proxy statement last year, GM revealed that Akerson, who was its CEO for four months in 2010, took home $2.53 million in total compensation for that year.
On Feb. 22, Fiat said that Marchionne was awarded with stock grants to receive 7 million shares. They could be exercised from 2012 to 2015. If he stays as CEO of Fiat, he will get a third of the shares each year. The last payment would be made on Feb. 22, 2015 if Marchionne keeps this role until that time.