Sergio Marchionne received EUR3.6 million ($5 million) in cash in 2013, including a bonus and incentives, for his role as chief executive of Fiat S.p.A., according to the group’s compensation report. Marchionne received a fixed remuneration of EUR2.3 million and a EUR1.3 million bonus for reaching certain performance targets, Fiat said in a statement.
Likewise, under a separate stock incentive scheme, Marchionne was granted the right to receive 2.3 million Fiat shares but he has yet to exercise that right. He already held around 3 million shares at the end of 2013. Fiat disclosed that Marchionne did not receive any monetary compensation for his role as Chrysler’s CEO in 2013.
According to a Chrysler filing with the United States Securities and Exchange Commission, Marchionne received benefits and stock awards valued at $307,989 in 2013 for his CEO role at the company. Marchionne has been CEO of both carmakers since Chrysler emerged from bankruptcy in 2009. He is expected to remain CEO of the merged Fiat Chrysler Automobiles for at least the next three years.
He did not use existing stock option plans in 2013. Fiat posted lower trading profit in 2013 to EUR3.39 billion from EUR3.54 billion in 2012, no thanks to a weaker performance in Latin America. The Italian carmaker also scrapped dividend on 2013 earnings to preserve cash after fully acquiring Chrysler.
Marchionne is bound to introduce a new industrial plan in May, which is expected to include new models from its Maserati, Alfa Romeo and Jeep brands that the new company will build for Asia and the Americas.
The new industrial plan is primarily targeted at making Fiat profitable again. Marchionne also received EUR2.1 million for his role as executive chairman of CNH Industrial. The tractor and trucks maker was formed from a merger of Fiat Industrial and its CNH unit. [source: Autoblog]