Despite managing a major turnaround of both Fiat and Chrysler – and the recent merger of the two companies, Sergio Marchionne took home a relatively modest $307,989 in compensation from the U.S. maker last year – barely 1% of what Alan Mulally, the CEO of rival Ford Motor Co., took home in stock alone.
In fact, Marchionne actually earned less than four other executives at Chrysler. And unless the newly merged Fiat Chrysler Automobiles, or FCA, ups the ante, Marchionne won’t do much better when compared to Mary Barra, General Motors’ new CEO, who is expected to earn $14.4 million for 2014.
Barra’s proposed compensation package was revealed last month after GM scrambled to offset a backlash from earlier reports suggesting the company’s first female CEO would get less pay than the man she replaced. Meanwhile, Ford and Chrysler are just releasing their own top management pay numbers as part of their annual filings with the SEC.
Marchionne’s pay lagged well behind what Chrysler paid Chief Financial Officer Richard Palmer and three other key executives: Ram and Chrysler Canada head Reid Bigland, Jeep and international operations boss Mike Manley and engineering czar Mark Chernoby – who received between $1.6 million and $2.3 million.
But Marchionne might turn out to have fared better once his compensation from Fiat SpA is revealed. The numbers for 2013 aren’t available yet, but in 2012 he took home about $18.9 million – or 14.5 million Euros – from the Fiat side of the business. Since the two companies have finally completed their merger, the newly minted FCA will likely report a single figure for 2014.
By contrast, Ford CEO Alan Mulally was awarded $13.8 million in stock grants for last year that he can cash in no earlier than 2016, along with $5.9 million or 540,544 shares, he can cash in now. In addition, Mulally also was given options for another 613,747 valued at $9.4 million at the current strike price of 15.37, according to the filings.
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That puts the former Boeing executive’s stock package at more than $29.1 million for 2013, according to new SEC documents. And that doesn’t include Mulally’s salary, bonuses and any other compensation that will be disclosed in a Ford proxy statement to be released before the company’s annual meeting this spring.
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In all, Mulally now owns the rights to more than 6.4 million shares of Ford stock, which is valued at more than $99 million at today’s prices. Virtually all of the Ford stock was acquired since Mulally joined Ford as CEO in 2006.
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Ford also disclosed stock grants to more than a dozen other executives and directors. That included $6.5 million for Chairman Bill Ford, $3.2 million for Chief Operating Officer Mark Fields, and $2.2 million for Joe Hinrichs, Ford’s President of the Americas. Those figures are based on current stock prices, though much of that stock isn’t immediately available for sale.
(Paul A. Eisenstein contributed to this report.)
U.S. CEO compensation for fortune 100 companies in general is drastically disproportionate to what CEOs around the world receive for comparable companies. This has been documented by numerous sources over the years.
Needless to say Tim Cook of Apple receiving $700 Million in annual compensation while using Chinese sweatshops to produce Apple products sold in the U.S. is a perfect example of human exploitation to serve the financial greed of a few unscrupulous CEOs.
This stuff is a disgrace but rarely reported by the media. Cooke could easily receive $20 million per year with Apple producing their products in the U.S. where Tim and the rest of the Apple family enjoy a pretty damn good standard of living, unlike the Chinese slaves being exploited at Foxconn and elsewhere.