Clever Chrysler CEO Hidden Pay Trick
Tim Esterdahl | Mar 22, 2012 | Comments 3
Sergio Marchionne has the best of two worlds as CEO of both Fiat and Chrysler, it must be nice. It was widely reported that, in 2011, Marchionne refused to accept a salary as the head of the Detroit automaker, one of many public relations coups that Chrysler has scored since it was bailed out of financial disaster by the U.S. government.
Chrysler/Fiat CEO Sergio Marchionne received much acclaim when he took no pay from Chrysler, however, he got a big fat paycheck from Fiat.
The salary issue is ironic considering Fiat’s failure to make a dent in the U.S. market last year, despite a massive marketing campaign that featured Jennifer Lopez driving a Fiat 500 Cabrio everywhere from her old stomping grounds in a fabricated Bronx to a glamorous performance at the 2011 Grammys. It was a complete flop, and Fiat dumped J.Lo in favor of harder-edged television spots anchored by Charlie Sheen and his bad-boy image.
On the other hand, Chrysler’s sales have remained fairly steady, and the automaker has been roundly applauded (criticized) for an advertising strategy that relies on gritty, patriotic commercials starring Clint Eastwood and music from Eminem. Chrysler’s Super Bowl ad was considered by many to be one of the best and most controversial ever.
It remains to be seen if there will be any blowback against Marchionne as consumers learn of the financial sleight of hand regarding his pay. It’s unlikely, considering the $19 million Fiat paid him last year is not even half the compensation of his main domestic rival, Ford CEO Alan Mulally. Mulally raked in a whopping $58.3 million in wages and company stock.
Perhaps auto executives around the world can learn a lesson from Marchionne’s business plan, except for the whole Jenny-from-the-block thing.
What do you think, clever accounting trick or out right douche?
Related Posts:
Filed Under: Auto News
I’ve seen first hand execs getting paid millions in bonuses of either stock options or moola and free mansions, not regular homes, paid for by the company with maids, etc., etc. galore fully furnished by the company. And this is all from companies that have been or near bankruptcy or just out of bankruptcy yet their low to middle class workers making 10-20 bucks per hour have a pay freeze or say no 500 dollar christmas bonus. Have worked for several companies in my day and have yet to see one mistreat the execs. Makes me sick to think what they could do with all those millions they have gotten in terms of not only making the company profitable instead of bankrupt and to treat their loyal workers busting their butts off day after day for chicken feed.
The web we weave. I guess he thought everyone here in USA was dumb. Liar liar pants on fire.
mk’s right, he’ll make millions from stock options.