CEO Sergio Marchionne gets $11M in pay
CEO Sergio Marchionne gets $11M in pay from FCA alone
February 29, 2016
FCA CEO Sergio Marchionne's pay declined in 2015 to $10.9 million from the $38 million he earned in 2014.
Sergio Marchionne, the CEO of Fiat Chrysler Automobiles, was paid $10.9 million in salary, bonuses and other compensation in 2015 as he led the continued transformation of the company into a single global automaker.
Last year, Marchionne received a base salary of $4 million, along with a $6.85-million bonus and about $137,000 in other compensation, according to an annual report filed Monday with the U.S. Securities and Exchange Commission.
In addition, the automaker's board granted Marchionne 4.32 million shares of stock that the CEO will gain access to if the company hits certain performance targets, and 1.62 million shares that he can access anytime he wishes.
FCA Chairman John Elkann received $2.14 million in total compensation. He was paid a salary of $2 million and about $139,000 in other compensation.
In 2015, Marchionne led FCA through its first full year as a combined company that is publicly traded on the New York Stock Exchange. The company's U.S. sales continued to rise, and the automaker's Jeep brand continued to expand rapidly around the world. Marchionne led an IPO of Ferrari last fall and oversaw the spin-off of Ferrari into a standalone company.
The company, in its annual report, said its executive compensation program is designed to align the interests of its executives with those of shareholders and the company's long-term interests.
"It is designed to reward our executives based on the achievement of sustained financial and operating performance as well as demonstrated leadership," FCA said in its annual report.
Executive compensation experts say that CEOs who own stock and long-term stock options in the companies they run are more likely to have the company's best interests in mind, leading to better overall profits and performance for the company.
The money paid to Marchionne by FCA is not his only source of income. Marchionne also is chairman of CNH Industrial and is chairman of Ferrari. CNH has not yet filed its annual report for 2015.
Last week, Bloomberg News estimated that Marchionne's total publicly disclosed holdings are worth $232 million, making him more invested in the companies he leads than other automotive CEOs.
According to Bloomberg, Carlos Ghosn, CEO of Nissan and Renault, has shares in the automakers worth about $49 million. Mark Fields, CEO of Ford, has company stock worth about $12 million, and General Motors' Mary Barra owns about $3.2 million in the Detroit carmaker.
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