News Column

Chrysler Gave Marchionne $1.2 Million in 2012

March 8, 2013

Brent Snavely

Chrysler Sergio Marchionne

Chrysler paid CEO Sergio Marchionne $1.2 million last year, and its other top four executives received substantial bonuses that more than doubled their 2011 compensation.

Most of Marchionne's compensation came from either stock awards or stock options with an estimated value of $1.1 million, for his service as a member of Chrysler's board, according to the company's annual report. The remaining $102,366 is the estimated value of company perks, such as housing expenses.

Fiat, which owns 58.5% of Chrysler, and Fiat Industrial will disclose what they paid Marchionne in coming weeks. Those two companies paid him $22.2 million in total compensation for 2011.

Chrysler also said total 2012 compensation of its other top four executives more than doubled because they became eligible for a bonus and capitalized on a performance program for the first time.

In 2012, Chrysler said the total compensation for its top four executives after Marchionne was as follows:

--Richard Palmer, chief financial officer and senior vice president, $3.7 million, including a $474,000 bonus.

--Holly Leese, former general counsel, $4.1 million, including a $312,100 bonus.

--Nancy Rae, senior vice president of human resources, $3.3 million, including a $374,130 bonus.

--Michael Manley, senior vice president of international operations and CEO of Jeep, $3 million, including a $380,000 bonus.

Chrysler spokeswoman Shawn Morgan said Chrysler's top executives were not eligible to participate in a performance and bonus plan until 2012 because of restrictions related to government loans Chrysler received in 2009. The company repaid those loans to the U.S. and Canadian governments in 2011.

Marchionne did not receive any money in salary or in bonuses in 2012 and has not received any cash salary from Chrysler since he became CEO in 2009.

On Wednesday, Ford disclosed that it awarded Ford CEO Alan Mulally performance bonuses valued at $11.7 million.

Source: (c)2013 the Detroit Free Press. Distributed by MCT Information Services.

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