This past Friday, Chrysler Group LLC issued a 300 page report to the US Securities and Exchange Commission pertaining to the first full calendar year of the automaker under new parent company Fiat and included in that SEC filing was the new that Chief Executive Officer Sergio Marchionne received no cash payments in 2010.
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Marchionne, who is also the CEO of Fiat SpA, did not receive a cash salary of any kind during the 2010 calendar year for his work position atop the Chrysler Group but instead, he received 361,446 shares of Chrysler Group LLC stock. When he was issued this chunk of company ownership in June 2009, it was listed as his payment for running the company from June 2009 to June 2012 and at the time of the deal, the stock was worth around $600,000. Based on other’s in a similar position around the industry, $200,000 is a deal for Chrysler (Dan Akerson from GM makes $1.7 million a year) but as can be expected, as the company’s financial position improved over the last year, the value of that stock has climbed to $2.9 million based on a valuation at the end of 2010.
The December 2010 price of Marchionne’s stock in the Chrysler Group puts him closer to a million dollars a year but depending on how the company continues to move forward over the next year, Sergio could stand to see the value of his stock in the company grow. However, Chrysler’s SEC filing also mentioned that there are certain variables that could slow the growth of the automaker, such as a spike in fuel prices – which the country is seeing right now.
Even with the price of fuel climbing, Chrysler is confident that their impressive new lineup will help them continue to grow as the auto industry continues to steady itself after a historic crash in 2008 and 2009. One other key to the company’s continued success is the $7 billion loan from the US Department of Energy that will be used for production facility upgrades, but Marchionne has pointed out more than once that those loan agreements have taken longer than they expected.
Source: Automotive News
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