Sergio Marchionne, Fiat SpA Chief Executive Officer, has received in 2011 compensation totaling $19 million, mostly in stock grants.
Besides the fixed salary of 2.45 million euros, Sergio Marchionne also received stock-related remuneration, with the value of 12.01 million euros. On the other hand, Marchionne didn’t receive any compensation from Chrysler where he is Chairman and CEO.
“Marchionne’s salary is in line with the industry’s top managers, and he shares company’s risk with the stock payment,” said Giuliano Noci, a marketing professor at Milan Polytechnic. “Industrywide speaking, the difference between top managers’ salary and workers is impressive.”
Ford Motor offered Chief Executive Officer Alan Mulally $58.3 million in stock as a reward for the company’s turnaround, while Volkswagen AG Chief Executive Officer Martin Winterkorn, who led the world’s second-largest carmaker to a record profit in 2011, earned 17.5 million euros to top the rankings as best-paid CEO in the benchmark DAX Index.
Fiat offered Marchionne stock grants to receive 7 million shares, which can be exercised from 2012 to 2015. He will also receive one third of the shares every year if he remains CEO of the Italian carmaker and his final payment will be made on February 22nd, 2015 if Marchionne is still in his post.