Fiat Chrysler Automobiles NV enjoyed a profitable 2017 and as a result CEO Sergio Marchionne received a raise to nearly $12 million in compensation. The company’s soon-to-retire leader made $11.5 million in 2016.
In addition, Marchionne also received stock for the first time in the last three years due to the company’s success. He is expected to retire later this year.
Marchionne’s compensation is a mix of salary, bonuses and other benefits. His base salary in 2017 was $4.3 million and he earned a $7.6 million performance bonus for the company’s results in 2016, according to Securities and Exchange Commission filings.
Similar filings for General Motors CEO Mary Barra and Ford CEO Jim Hackett are expected to be filed shortly. Barra’s total compensation for 2016 was $22.4 million. Hackett’s 2016 salary was a little more than $700,000, but he was not the automaker’s CEO. His predecessor in that job, Mark Fields, earned $22.1 million in compensation in 2016.
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Marchionne also received 2.8 million shares of FCA stock valued at $35.8 million. The shares cover the three-year period from 2014 to 2016 during which Marchionne received no shares. The CEO received the shares for hitting specific targets during those years.
Perhaps more importantly, this is just the first of three times he is expected to be rewarded with company stock. The next round 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, according to the filing.
Marchionne also received $3.4 million in other forms of compensation, such as insurance premiums and tax preparation. FCA announced Marchionne’s bonus for this year, based on the company’s performance in 2017, will be $5.7 million.
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Last year, he earned about $11.5 million, including $3.8 million in salary and a bonus of $6.9 million. Additionally, FCA Chairman John Elkann was paid in 2017 a base salary of $2.2 million and other compensation of $500,238.
Marchionne successor is likely to benefit greatly from the changes he’s implemented during the current five-year plan. However, he’s been quiet about who will replace him later this year. Recent changes in the executive structure at the company failed to shed any real light on what direction he may be leaning.
Tim Kuniskis was named Head of Alfa Romeo and Maserati brands globally. Kuniskis was head of passenger car brands in North America, which includes Chrysler, Dodge, Fiat and SRT. Steve Beahm will replace Kuniskis as Head of Passenger Car Brands in North America. Reid Bigland, who was formerly Head of Alfa Romeo and Maserati brands globally, will continue serving as Head of U.S. Sales as well as President and CEO of FCA Canada.
Marchionne, who has been known to change his mind, has said publicly that he expects to name his successor on June 1. He has also emphasized that his successor will come from within the ranks of the company’s top executives. Bigland, who has been with Marchionne since he took over running the Fiat-Chrysler enterprise since 2009, is thought to be one of the handful of top executives in a strong position.
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While Marchionne has never indicated any favorites publicly, the short list of potential candidates is thought to also include CFO Richard Palmer, Michael Manley, head of the Ram and Jeep Brands, Pietro Gorlier, the head of parts and services and a Fiat veteran who has been close to Marchionne since the Chrysler take over as well Alfredo Altavilla, chief operating officer for FCA in Europe, Africa and the Middle East. Altavilla has run the Fiat business in Europe since 2012.