No salary for Sergio Marchionne

By Cornelius Nunev


In an age when automotive bailouts and CEO wages have given the car-buying taxpayers something to hate, one CEO has shown that he drew no salary. The Detroit Free Press reports that Chrysler's yearly financial report filed Tues reveals that company Chairman and CEO Sergio Marchionne was compensated no income or stock options in 2011. Marchionne, who is also the CEO of Fiat, did obtain compensation and stock from the Italian car maker.

All about Fiat compensation

A report was also filed by Fiat on Tuesday about the company's financial info. It is known that Sergio Marchionne got paid by the business, but the report did not say how much he got compensated. Fiat paid $4.5 million in 2010, which was the same year that he got $600,000 in stock and other awards from Chrysler without salary or bonuses. Fiat owns 58.5 percent of Chrysler.

All about giving back

Marchionne's lack of a salary in 2012 stands in extreme contrast with what Ford CEO Alan Mulally received in total compensation. Sources indicate that Mulally received $26.5 million in total payment last year. Mulally also acquired 2.85 million shares of Ford stock via options exercised the previous year. That stock currently has a value of $34.5 million, according to the Free Press.

Total salary for GM CEO Dan Akerson was $1.7 million. He also got $5.3 million in stock, although $2 million was restricted.

The United States Treasury would have taken a very close look at Marchionne's payment if he had been given any in 2011 since the company took bailout money from the federal government. The officials would have looked at how compensation affected the 2009 emergency Chapter 11 bankruptcy that Chrysler went through. Ford does not have to be topic to United States Treasury review because it did not take any cash from the bailout.

Paying back bailout funds

Marchionne explained that Chrysler and Fiat are both going to stay on course now that they have compensated all automotive bailout loans from the U.S. and Canadian government back. The last payment, according to the Free Press, was paid in May of last year.

"We're going to remain competitive, but I think the industry itself has learned how to be much more cautious," he said. "We intend to follow that trend, and I don't think we should be breaking with what I consider to be a ... institutionalized trend today in the marketplace."




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