Autoblog

Chrysler paid Marchionne nothing in 2011

Jeremy Korzeniewski — Thu, 08 Mar 2012 13:28:00 EST

Filed under: Government/Legal, Chrysler, Earnings/Financials, Fiat

Chrysler has filed its annual financial report with the Security and Exchange Commission, and a few important tidbits have thus been revealed. For instance, company CEO Sergio Marchionne was paid exactly zero dollars last year in compensation for the role he played in rescuing Chrysler from the clutches of bankruptcy.

It's important to note that Chrysler is no longer under restrictions from the U.S. government when it comes to executive pay since the Treasury has sold its entire stake in Chrysler. Still, Chrysler voluntarily decided to limit the compensation of some top executives. Marchionne did receive $4.5 million from Fiat, the Italian automaker he guided in its acquisition of Chrysler in 2009.

Up for an interesting exercise? Contrast Marchionne's total compensation with that of rival CEO Alan Mulally from Ford. Mulally received $58.3 million in company stock in 2011, in addition to whatever he is paid in salary as CEO. Of course, Ford did not accept any bailout assistance from the government and was therefore never under any compensation restrictions, but that's still a heck of a lot of money.

Chrysler paid Marchionne nothing in 2011 originally appeared on Autoblog on Thu, 08 Mar 2012 13:28:00 EST. Please see our terms for use of feeds.

Permalink | Email this | Comments

Despite lengthy bankruptcy, Visteon's Stebbins earns more than any other MI-based CEO

Chris Shunk — Thu, 12 May 2011 07:58:00 EST

Filed under: Earnings/Financials

There were some raised eyebrows after Ford CEO Alan Mulally raked in $26.5 million in 2010, even after the company realized a healthy profit and significantly improved sales. But while Mulally got a big check for being instrumental in the company's high-profile turnaround, he wasn't even the highest paid CEO in Michigan.

Automotive News is reporting that Visteon CEO Donald Stebbins pulled in $26.9 million in 2010, due in part to stock received as part of the supplier's bankruptcy reorganization. Stebbins' total compensation included a $21.2-million stock award, which was bolstered by the fact that shares of Visteon stock went from $49 in October to $66.90 at the end of last week.

Stebbins isn't the only Visteon executive to get a fat payday in 2010, as CFO William Quigley took in $11 million in compensation and VP Joy Greenway banked another $6 million. Executives weren't the only ones to benefit from Visteon's bankruptcy, either. Bondholders received shares that are currently worth $3 billion; a reported profit of $1.9 billion beyond their original investment.

Shareholders weren't so lucky. Visteon's old shares were canceled as part of the bankruptcy, and those shares were replaced with only one million of the new shares, or 2.5 percent of the company. That's about 61 cents per share of the old stock.

You can probably guess that the old shareholders feel slighted by the agreement. One unnamed source told Automotive News that it was unfair for Visteon executives to receive an alleged $114 million in total compensation for steering a company to bankruptcy. What say you?

Despite lengthy bankruptcy, Visteon's Stebbins earns more than any other MI-based CEO originally appeared on Autoblog on Thu, 12 May 2011 07:58:00 EST. Please see our terms for use of feeds.

Permalink | Email this | Comments

Ducati North America seeks new CEO

Devon Brozek — Sat, 17 Jul 2010 09:25:00 EST

Filed under: Performance, Hirings/Firings/Layoffs, Earnings/Financials, Motorcycle, Rumormill, Luxury

Amidst recent rumors, Ducati has officially announced that its CEO of North American operations, Michael Lock, will step down at the end of July to pursue other opportunities.

Since Lock took the reins in North America in late 2003, Ducati has bridged the gap from something of a novelty brand to what is perhaps the most feared and admired European motorcycle brand. Ducati owners may still crave an exclusive, somewhat eccentric image, but the brand has become very mainstream in the U.S. and Canada, competing at the top of several segments and boasting a robust dealer network. With waiting lists for new models and a full apparel collection to further pad the bottom line, we don't see the momentum slowing much in years to come. In the interim, Ducati N.A. will be run by VP of Sales for Ducati Holdings, Christiano Silei. As far as a long-term plan, expect to see a new CEO appointed soon.

And what of Michael Lock? Why would the successful executive leave when he's at the top of his game? Well, we suspect "other opportunities" to involve plenty of cash and a new challenge for the former Ducati captain. Who knows, maybe Triumph hired him back? Hit the break to view the official press release.

[Source: Ducati]

Continue reading Ducati North America seeks new CEO

Ducati North America seeks new CEO originally appeared on Autoblog on Sat, 17 Jul 2010 09:25:00 EST. Please see our terms for use of feeds.

Permalink | Email this | Comments

Ford's Alan Mulally earns $18m in 2009. Is he worth it?

Jonathon Ramsey — Wed, 24 Mar 2010 18:01:00 EST

Filed under: Ford, Earnings/Financials

That's a rhetorical question - of course he's worth it. Put another way, imagine if Bill Ford were asked this question a few years ago: "Hey Bill, you can have Alan Mulally not only return Ford to profits that end in "billions," he'll raise the stock price, deal with the UAW, burnish Ford's public perception by avoiding bankruptcy, and start giving U.S. buyers the products they've been begging for. That will only cost you $18 million a year, just $1.4 million of it in cash. Or you and your shareholders can have... let's see... something that looks a lot like 'oblivion.' Take your time answering."

Alan Mulally didn't do it all by himself, but he was brought in to steer the ship and he appears to have done everything he was installed to do. Sure, $18 million is double the amount that General Motors' Ed Whitacre gets in total compensation, and a little more than double what GMAC CEO Michael Carpenter gets - but if you asked each of those two companies if they would double their CEO pay to be where Ford is, we have a feeling we know the answer already.

[Source: Detroit News]

Ford's Alan Mulally earns $18m in 2009. Is he worth it? originally appeared on Autoblog on Wed, 24 Mar 2010 18:01:00 EST. Please see our terms for use of feeds.

Read | Permalink | Email this | Comments

Report: GM CEO could earn $9M per year, ex-CEO Henderson hired as $60k/month consultant

Jonathon Ramsey — Mon, 22 Feb 2010 09:59:00 EST

Filed under: Government/Legal, GM, Earnings/Financials

Two different outlets are reporting two seemingly conflicting reports about pay at General Motors, but it's clear regardless of the details that money is in motion at The General. Ed Whitacre, Jr., who doesn't receive any pay as GM's chairman, is waiting on approval from the Treasury pay czar for a $9 million "pay package" for his recent move to CEO. The pay has been "approved 'in principle'," but we aren't sure when it's going to be paid.

Bloomberg reports that "GM said Whitacre's annual compensation will be $9 million, with a $1.7 million cash salary, $5.3 million in stock that begins paying in 2012 and $2 million in restricted stock." The Detroit News says that Whitacre will get the $1.7 million, but that the $5.3 million in stock will be paid out on a predetermined scheduled over three years starting in 2012. The $2 million in restricted stock is also reportedly performance based, but what criteria will be used to determine when the stock's released is not yet known.

Whether it's $9 million per year or $9 million over five years, we hope it's all the incentive Whitacre needs to get the RenCen ship going great guns again. Bloomberg also reports that he's unhappy with the pace of change at the company, canceling executives' meetings because they "spend too much time in such gatherings instead of getting work done." Those are the eggs being broken to make a "corporate culture based on decision-making and accountability" omelet.

There is no question, though, around Fritz Henderson's pay package: he earns $59,090 for 20 hours of work per month as a consultant. He is back in the GM family to help the company with its international operations, something he is well regarded for. It might sound like a lot, but he left with no severance last year and it's only a little less than he was being paid as CEO to do a lot more work. And if he can help GM recharge the Opel/Vauxhall franchise, who knows, he might be worth it. Hat tip to John!

[Source: The Detroit News, Bloomberg | Image: Bill Pugliano/Getty Images]

Report: GM CEO could earn $9M per year, ex-CEO Henderson hired as $60k/month consultant originally appeared on Autoblog on Mon, 22 Feb 2010 09:59:00 EST. Please see our terms for use of feeds.

Read | Permalink | Email this | Comments

How much does Nardelli really earn? Could be much more than $1

Jonathon Ramsey — Wed, 18 Feb 2009 18:04:00 EST

Filed under: Etc., Government/Legal, Earnings/Financials

The president decreed that CEOs running banks that received TARP funds couldn't be paid more than $500,000 each year. Chrysler isn't a bank, yet it has received TARP funds, and its CEO, Bob Nardelli, is well under the $500,000. Or at least, he might be. During recent Congressional hearings Nardelli was asked if he'd take a pay cut to $1 a year, and he said he would; the only thing is, he was already making $1 a year.

When Nardelli joined Chrysler in 2007, he signed on for an annual paycheck of $1. The question is, is that all he's making? Neither Chrysler nor parent company Cerberus will say, and as a private company, Cerberus isn't compelled to. On the other side of the automaker CEO coin, it has been revealed that GM CEO Rick Wagoner is only getting a dollar and no bonus on top of that.

The issue certain people want addressed is whether taxpayer funds are being vacuumed into CEO bank accounts. In Chrysler's case it's not so clear how much Nardelli makes nor where any amount more than $1 is coming from -- Cerberus has various interests outside of Chrysler which could fund any theoretical bonus Nardelli gets.

[Source: ABC News]

How much does Nardelli really earn? Could be much more than $1 originally appeared on Autoblog on Wed, 18 Feb 2009 18:04:00 EST. Please see our terms for use of feeds.

Read | Permalink | Email this | Comments

Mulally and Wagoner reconsider $1 salary for federal aid

John Neff — Tue, 02 Dec 2008 13:27:00 EST

Filed under: Government/Legal, Ford, GM, Earnings/Financials

Chrysler CEO Bob Nardelli was the only auto exec who readily offered to work for a buck if it meant securing federal aid from Congress in the form of bridge loans. Ford CEO Alan Mulally famously told the politicians sitting before him, "I think I'm OK where I am." We would be OK too with the tens of millions of dollars that Mulally has received as compensation so far from Ford. GM CEO Rick Wagoner was described as being "demur" when asked about lowering his salary to a $1.

Now it seems that the boy from Boeing and the Ricker are reconsidering their previous reluctance to take a pay cut. The Detroit Free Press is reporting that both CEOs are prepared to tell Congress on Thursday that they would be willing to work for $1 if it meant getting the approval of Congress for federal loans.

Congress had previously demanded the each of the Detroit 3 automakers submit a detailed plan to Congress outlining how they would use the federal loans to return to profitability and ensure the long term viability of their companies. Ford is the first to turn their homework in, which reveals the Blue Oval expects to be making money again in 2011 and will have an all-electric sedan on sale by then. All it's asking in return is a $9 billion slice of the $25 billion federal aid package that would only be used if necessary. Ford already has enough credit to survive through 2010 and only envisions needing the fed's money if something happens to either GM or Chrysler.

[Source: Detroit Free Press]

Mulally and Wagoner reconsider $1 salary for federal aid originally appeared on Autoblog on Tue, 02 Dec 2008 13:27:00 EST. Please see our terms for use of feeds.

Permalink | Email this | Comments