• Jun 5th 2007 at 4:24PM
  • 26
Jurgen Schrempp was a visionary. He didn't pull off his vision of massive synergies and massive profits for DaimlerChrysler. He did, though, manage to conjure and pull off the vision of massive profits for himself. In spite of a $36 billion dollar "merger" that turned almost immediately into a 9-year shouting match and a $29 billion dollar loss (give or take) for Daimler, Schrempp might walk away with $134 million for his... troubles. Why? Two words: stock options.

Schrempp left the DaimlerChrysler building in 2005, but took with him one million stock options that might be worth something if someone ever turned DaimlerChrysler around. While Schrempp put in a great deal of effort and really did believe in what he was doing, it would be hard for him not to make money off the options he was given, based on the fact that he had halved the market value of the company by the time he left in 2005. As long as the company doesn't go under, that is. A month ago, when the sale of the company was announced, DCX shares were at about 64 euros on the German index, the DAX, and rising. That was roughly a 90% increase in value since Schrempp's departure. It is speculated that the stock will get to 100 euros. If it does, that's a $100 million euro payday. Even if he took the going rate, he still rakes in about 68 million euros. Not bad for a vision that didn't pan out.

[Source: Detroit News]

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    • 1 Second Ago
      • 8 Years Ago
      Did he not work for Daimler? Did Daimler not rape and pillage Chrysler's resources and mismanage them?
        • 8 Years Ago
        Saved Chrysler from going down the tubes. Riiiiiiight. You're delusional.

        And what I grasp is this (it's pretty simple, so follow along): Schrempp was an employee of Daimler, a board member and President of Daimler South Africa...he was part of the team that bled Chrysler dry and left them for dead.
        • 8 Years Ago
        "Did Daimler not rape and pillage Chrysler's resources and mismanage them?"

        No! They saved Chrysler from going down the tube. The joint of the two companies was a MUTUAL agreement. Chrysler would not have been put up with Daimler had it not been thought beneficial for BOTH. It was not a forced takeover by Daimler. *When will Americans get this through their thick skulls.

        If an investor doesn't invest, then companies do not exist. These shares were not a gift to . The money paid for them (Schrempp money) was used with money from other investors. Just like the times Chrysler got loans from taxpayers. The difference being that the taxpayer didn't get much benefit from the loan being repaid. Investors do not invest without expectations of profit for their risks. Why is this so hard for you to grasp?
      • 8 Years Ago
      It's money that Jurgen Schrempp invested and that Chrysler operated on. This is the reward after Chrysler was sold. Had Chrysler folded, Schrempp would have lost the money. Is this so hard to understand?
      • 8 Years Ago
      Barney @ Jun 6th 2007 12:13AM

      "No! They saved Chrysler from going down the tube. The joint of the two companies was a MUTUAL agreement. Chrysler would not have been put up with Daimler had it not been thought beneficial for BOTH. It was not a forced takeover by Daimler. *When will Americans get this through their thick skulls."

      Barney, you should try your hand at writing fiction, you have a good imagination. Chrysler was the MOST profitable automaker on the planet with the shortest time to market for new products when Daimler "merged" with them. Even the the recent "sales bank" was the work of a Daimler executive.

      By the way I think the bigger "thief" in this sad tale is Bob Eaton. I hope he spends eternity with a broken down Mercedes (electrical issues) that can't be fixed while a mechanic tells him it's the best made car in the world.

      • 8 Years Ago
      There's something seriously wrong with capitalism when a person who halves the market value of a company can make $134-million .
      • 8 Years Ago
      I haven't liked this guy from day 1 when I heard of the D/C merger. I have to say, I dislike him even more now.
      • 8 Years Ago
      Pennies on the dollar, or even much less compared to what the oil companies are doing to working Americans. Some of those who also have lost love ones in a war to do much about oil than anything else.
      Like worring about someone walking out the front with an radio in his pocket while many are walking out the back door with 60 inch televisions.
      The stock option was Jurgens` own investment even if given to him by Diamler.
      I hope Chrysler returns to being a great American auto company.
      • 8 Years Ago
      Jurgen Schrempp's good fortune is positive proof that even a blind pig finds a truffle now and then.
        • 8 Years Ago
        Mal Fuller @ Jun 5th 2007 7:01PM wrote: "even a blind pig finds a truffle now and then."

        FYI, pigs (and dogs) find truffles with their sense of smell, not sight.
          • 8 Years Ago
          Oh, is that how you do it Big Rocket?
      • 8 Years Ago
      I wouldn't feel too envious for Schrempp. I don't know what kind of options he has, but I don't doubt that once he gets finished paying the heinous socialistic European taxes on whatever income he derives, HE'LL feel like he has been raped, pillaged, and plundered.
      • 8 Years Ago
      One day we'll decide we're not going to tolerate this kind of thievery from corporate America. The execs get rich and the common working man is on the street. That's not capitalism, that's just old fashioned larceny.
      • 8 Years Ago
      How does that guy even sleep at night? He should be ashamed for taking that money. If there really is a Hell I know he'll someday be there.
      • 8 Years Ago
      I know this is an automotive blog but doesn't anyone here understand how a stock option works? Before he can sell the stock for 60 or 100 euros each he must still buy the stock and then there is usually a waiting period and limits on the amount of the stock he can sell. A stock option is the option to buy a given stock at a discounted price, it's not free stock.
      • 8 Years Ago
      "that bled Chrysler dry and left them for dead"

      Get off your American propaganda and face realism. It's statements like that, why people are laughing at American manufacturers groveling at the bit. You just can't accept that Chrysler was another failing American company and one of many who can't survive in their own country. Your an American who blames others for your faults and beat your chest to the point of internal bleeding because you think you are right.
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