Sergio Marchionne Awarded $36 Million In Stocks For His Performance In FCA

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.

  • Dennis James

    Who’s laughing now ? 🙂

    • Status

      The dealers who convinced buyers to lease an FCA product.

  • Toronado_II

    Ha ha ! A bonus to kill Chrysler…

  • Carmelo Van Cabboi

    A few days ago, Carscopps always read about how badly Marchionne had done his job and FCA was at the Bank. Now we read this article, I think the facts are clear.

  • haudit

    He might not be who Chrysler enthusiasts would have chosen to run FCA, but the numbers speak for themselves. Net profits increased to $4bn in 2017, while the company’s debt was cut in half to just over $3bn. Like it or not, under his leadership, the company has managed to meet or exceed every financial goal it set for itself, and he’s been appropriately rewarded.

    • Ed Ward

      Those numbers would have been 10 times better if he’d used Chrysler’s 6 billion on Chrysler Dodge. Alfa Romeo and Maserati will never turn a profit.

      • LWOAP

        You still think Fiat stole Chrysler’s money and left them to rot, right?

        • Six Thousand Times

          That thing about not being able to fix stupid…

        • Ed Ward

          I wish it was my thinking but Fiat had no money to fix Alfa Romeo and Maserati, it tried for 30 years but low margin Fiats made no money. Chrysler’s cash on hand was depleted to save a Dead Alfa Romeo and Fiats European operations and you can obviously see what happened to Chrysler and Dodge. In for Alfa Romeo to turn a profit, Jaguar-Lexus-Cadillac and Infiniti would have to disappear and those companies are to advance to disappear for a carcass called Alfa

  • Nordschleife

    Well he could funnel that money back into Chrysler, kill Chrysler or create the 6C. I am not sure what I want him to do.

  • TrevP

    Does the new business plan include Dodge and Chrysler this time around?

    • Six Thousand Times

      Not if they’re smart.

    • Ed Ward

      Of course not, Chrysler and Dodge seems to scare the Europeans, forcing them to loot the brands. Fiat and it’s brands only make 20%of corporate profits and they can’t produce credibility without Chrysler’s 80%>

  • N1

    Should have payed him in Lancia stock.

  • SgtBeavis

    I don’t think an exec has been this overpaid since Meg Whitman drove HP into the ground.

  • Craig

    A shameful thing really. Being rewarded far beyond your effort is one of the reasons – if not THE reason – so many people in Marchionne’s position fail. The motivation to be seen as a success is all but lost. Target opened stores all across Canada not long ago. It was a massive failure. So much so – all stores closed. But the man in charge of making it a success was given $61,000,000 in a so-called ‘walk-away’ package. He FAILED MISERABLY and ended up being given more money than all 17,600 employees combined got. Point being… success or failure no longer matters.

    • Status

      Pretty much. Just like how we’d hear of anecdotal stories of a children soccer competition where there were no medals issued for the winners; that both teams were given ‘participation awards’.

      The same kind of behavior is taken at executive levels; win or lose, they still walk away with ‘participation bonus’.

  • LeStori

    So a lot of promises were made under his “rule” and for companies like Alfa romeo, most of the product never turned up. No wonder he deserved a bonus….

  • Ed Ward

    As long as Chrysler is apart of the deal, it’s a bonus. Fiat as a stand alone company was never worth anything.

  • Bo Hanan

    Well said!

  • Dariush

    Ahhahahhahahahahhahahahha!!!!!

  • Bobby Ang

    One of the worst CEOs in the auto sector. All he cares is tabling KPIs that his blind and dumb board had to accept. Then he kept the company in black by bringing Fiat 500s to car shows for the 14th year in a row. These CEOs (same as Carlos Ghosn) never made anything daring, never dare to invest and bring the company forward into a product offensive. All he cares is to remain in black and hit his KPI and cement his own exit plan.

  • TrevP

    Did that comment really make sense in your brain?

  • LWOAP

    Stop fanboying for FCA please.

  • Eagle By Singer

    Nice name there.

  • Six Thousand Times

    Money. Well. Spent. Well, money spent, anyway.

    • Ed Ward

      Alfa will die in 5 years. No one will buy garbage cars, no one will pass over a JAG or a Benz or BMW for a Alfa Romeo, it’ll never EVER happen

      • Six Thousand Times

        Still lost on the way back to allpar?

      • Status

        Well most people have to pass over a Kia, Suzuki, or Mitsubishi before they settle on a Chrysler or Dodge, so it must be a problem endemic to FCA.

        Those incentive discounts are big for a reason; what FCA looses in on market residuals in the short term hits the buyer super hard in the long term.

  • Six Thousand Times

    Essentially this.

  • Ed Ward

    Alfa Romeo was and still is Dead, even with new products.

  • LWOAP

    Calm down.

  • SteersUright

    Despicable. The gap in pay between the average person slaving away at that company at the CEO is reprehensible, especially today in 2018. These issues MUST be addressed at some point.

    • gary4205

      A person is worth whatever kind of deal they can make.

      If you want to make big money, you gotta take risks. That goes for both individuals as well as companies.

      If you want a better job, better pay, it’s up to you to make it happen.

      Learn marketable skills.

      • SteersUright

        Lol, you’re so out of touch its almost comical. By your logic, every person has equal opportunity at wealth and success based on the “deal they can make” right? So a child born on the wrong side of the tracks and exposed to lesser quality of education if any, should just accept his/her fate as a dishwasher or minimum wage earner/sufferer their whole life because they couldn’t cut as good of a deal as the brats born into wealthy families who pay their way into great school and later call favors upon friends to get them placed in lucrative positions? You, Gary, are obstinate, unaware, non-empathetic, and honestly, simply not that bright yourself if you cant see the entire real picture outside of whatever rhetoric has been fed to you.

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