Long-running Fiat Chrysler Automobiles Chief Executive Officer Sergio Marchionne has more power than ever in the automaker he helped create after almost doubling his voting stake.
He now holds 0.75 % of the voting stakes in the carmaker after his latest financial moves – he exercised stock options and cashed in (around $13 million) on a share price jump triggered by the announcement that the company would spin off the luxury supercar manufacturer Ferrari.
According to a statement from the company, Marchionne now has 12.1 million common shares – a total of 0.75 % voting stake when taking into account a total share capital of 1.6 billion shares, including loyalty shares. According to Reuters calculations, the CEO previously held 0.4% voting stake.
Dutch market regulator AFM showed fillings that revealed Marchionne’s stock moves: he exercised options for 6.25 million FCA shares that were scheduled to expire on November 3 and then did it again for the same amount of stakes in CNH Industrial, the truck and tractor producer that was spun off from the Fiat group. The total price was of 83.6 million euros (65.60 million pounds). He then sold at the end of the month all the shares for 94.3 million euros, netting a huge benefit for the chief executive, as the shares climbed after the Ferrari strategy announcement.