Fiat Chrysler’s Marchionne paid nearly $12M in 2017
Fiat Chrysler Automobiles NV CEO Sergio Marchionne was paid 9.67 million euros (nearly $12 million) in compensation in 2017.
That’s slightly more than the nearly $11.5 million he made in 2016, and Marchionne will also receive shares of stock for the first time in three years based on the company’s recent financial success.
Marchionne’s base salary in 2017 totaled 3.5 million euros ($4.3 million), and he earned a 6.1 million-euro ($7.57 million) bonus based on 2016 performance, according to an annual statement issued Tuesday by the Italian-American automaker and filed with the Securities and Exchange Commission. He received 2.79 million shares of FCA stock which have a current value of 28.98 million euros ($35.77 million), and cover the three-year period from 2014 to 2016 during which Marchionne received no shares.
The delayed delivery of shares was laid out in a five-year business plan Marchionne presented in 2014, which was designed to make FCA profitable. The company designed a compensation plan that would give its CEO ownership of shares, so long as he met annual performance metrics, in three separate tranches. The shares delivered for 2017 are the first tranche, the second will be delivered in 2018 based on performance in 2014-2017 and the third will be delivered in 2019, based on performance during the full five-year business plan.
Marchionne, who has said he will retire in April 2019 when his five-year plan is complete, received 2.7 million euros ($3.37 million) in other compensation, including insurance premiums and tax preparation.
FCA also announced Marchionne’s bonus for this year, based on the company’s performance in 2017: He is set to receive more than 4.6 million euros ($5.7 million).
The Fiat Chrysler CEO earned in 2016 10.8 million euros, at the time worth nearly $11.5 million, including a 3.61 million euro base salary ($3.82 million) and a 6.3 million euro bonus worth about $6.89 million when it was announced in 2015.
FCA Chairman John Elkann was paid in 2017 a base salary of 1.77 million euros ($2.18 million) and other compensation of 405,399 euros ($500,238).
Fiat Chrysler’s stock price closed Tuesday at $22.10 a share, down 1.3 percent.
General Motors Co. and Ford Motor Co. have not yet released annual proxy statements and executive compensation for 2017.
GM CEO Mary Barra was the highest-paid Detroit Three executive in 2016. GM paid Barra $22.58 million in total compensation in 2016. The Detroit automaker usually releases its annual proxy in April.
Ford’s former CEO Mark Fields, who was replaced by Jim Hackett in May, was paid $22.1 million in total compensation in 2016.
The Dearborn-based automaker said in a regulatory filing after Hackett took the job that he would receive an annual salary of $1.8 million and an accession bonus of $1 million. Including other incentive- and performance-based pay and stock, Hackett could have received as much as $13.4 million in 2017 as CEO. Ford typically releases its annual proxy in mid-March.