Fiat Chrysler Automobiles chief executive Sergio Marchionne exercised options for 6.25 million FCA shares on Oct. 30, then sold them the next day. He estimated to have made around EUR10.7 million ($13.4 million) more from the sale, thanks to an increase in FCA’s share price after the CEO announced a plan to spin off Ferrari.
Marchionne also exercise options for 6.25 million shares in CNH Industrial NV. According to filings posted on the Web site of Dutch financial-markets regulator AFM, Marchionne spent EUR83.6 million for the FCA and CNH shares, and received EUR94.3 million as proceeds from the transactions.
The options – granted in 2006 -- were bound to expire in November 3. Fiat Chrysler saw its shares in Milan jump 13 percent on Oct. 29 after it disclosed plans to sell 10 percent of Ferrari to investors and distribute the rest of its stake to its own shareholders.
Had Marchionne exercised the options on Oct. 28 closing prices, he would only have made just EUR3.4 million. Ferrari’s spinoff will allow Fiat Chrysler to help raise around EUR4 billion by creating demand for a mandatory convertible bond and a share sale.
It will provide the carmaker fresh cash to trim its debt and to better merge Fiat and Chrysler into an auto company large enough to take on the global top three – Toyota, Volkswagen and General Motors.
Marchionne would have made EUR13.7 million more in April this year when Fiat shares was at their highest level since November 2007 and CNH stock was 25 percent above last week's prices – placing them at EUR108 million.