Fiat-Chrysler Automobiles CEO Sergio Marchionne was compensated handsomely for his world-beating returns among its car-making peers the last few years.
Marchionne earned $12 million in base compensation and bonus during 2017 and collected stock valued at about $36 million in March 2017 which covers the three previous years, Bloomberg reports.
The dramatic rise of FCA’s stock had a multiplier effect in Marchionne’s compensation and general wealth, placing him among the mega-wealthy who typically found and own companies, not those hired to run them. So far Marchionne owns Fiat Chrysler shares now worth around $362 million, along with $190 million of Ferrari and $169 million of truck and tractor manufacturer CNH Industrial.
Marchionne has sold more than one-third of the 2.8 million shares delivered to him in 2017 in order to pay taxes but even so, the remaining 1.8 million shares are now worth almost $40 million – more than the initial grant.
These shares were awarded as a performance-based pay program in which Marchionne achieved all profit and business plan targets, delivering an almost quadrupling of value to shareholders during the three-year stretch. According to FCA’s filing, that performance was the best among the 10 car makers the company considers as its peers.
Marchionne plans to retire in the first half of 2019, with Fiat Chrysler set to reveal its business plan for 2018 to 2022 on June 1 this year.
