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Sergio Marchionne’s big (really big) payday

by Bill Cawthon on

There have been several reports recently about Fiat Chrysler Automobiles CEO Sergio Marchionne’s 2014 compensation package.

Marchionne-Euros

Automotive News quoted Reuters, which pegged the value at about $34 million, a sum that easily trumps the $29.5 million package Ford gave to former CEO Alan Mulally in 2011. It also eclipses the $14.4 million General Motors says it gave CEO Mary Barra for 2014.

However, the real value of Marchionne’s big payday was much higher than that.

FCA’s most recent 20-F filling with the SEC lists all the compensation figures in euros. Reuters based their dollar values on the exchange rate for the euro on the day they ran their story, which was about $1.10. The actual payout occurred on December 31, 2014, when the euro was worth about $1.21. Eleven cents isn’t much in and of itself, but when dealing with numbers like those in Marchionne’s compensation, all those pennies add up to about $3.45 million.

Marchionne’s 2014 cash compensation totaled $37.9 million when it was paid, five times the cash portion of Mulally’s package.

Mulally got more stock, $22 million, but, if it’s approved by FCA shareholders next month, Marchionne still will get 1.62 million shares of FCA, valued at $12.9 million at current prices. In addition, the directors voted to pay him a bonus worth about $13.2 million, at current exchange rates, when he retires.

Then there’s the matter of Marchionne’s pay from CNH Industrial N.V., the company Marchionne and John Elkann put together from Case New Holland and Fiat Industrial in 2013. Marchionne is the chairman of CNH Industrial’s board of directors and received total compensation of $2,522,552 at the end of 2014.

In all, Marchionne took home more than $44.5 million, not counting the stock or deferred bonus. Adding those back in brings the total to more than $66.4 million, a tidy sum.

He gets a company car, too.

BIG CEO PAYDAYS
Compensation Type Marchionne 2014* Mulally 2011
Pay $3,027,689 $2,000,000
Performance Bonus $4,844,093 $5,460,000
One-time Bonus $29,912,275 $0
Total Cash $37,784,057 $7,460,000
Stock $12,895,200 $22,000,000
Severance Bonus $13,211,780 $0
Total Primary Compensation $63,891,037 $29,460,000
CNH Holdings Pay $1,695,587
CNH Pension & Other Benefits $826,965
Total FCA/CNH Compensation $66,413,589
*Compensation figures calculated at euro-dollar exchange rates on 12/31/2014
FCA & CNH Stock values as of 3/5/2015

Note: Compensation information taken from Fiat Chrysler Automobiles N.V. and CNH Industrial N.V. most recent 20-F filings with the U.S. Securities & Exchange Commission.

Bill Cawthon grew up in the auto industry in the 1950s. His Dad worked for Chrysler and Bill spent a number of Saturdays down on the plant floor at Dodge Main in Hamtramck. Bill is also the U.S. market correspondent for just-auto.com, a British auto industry publication, and a member of the Texas Auto Writers Association, which has named the Jeep Grand Cherokee the “SUV of Texas” several times and named the Ram 1500 as the “Truck of Texas” two years running.

Bill has owned five Plymouths (including the only 1962 “Texan”), one Dodge and one Chrysler and is still trying to figure out how to justify a Wrangler. He also has owned at least one of every 1:87 scale model of a Chrysler product. You can reach him directly at (206) 888-7324 or by using the form.

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