Chrysler-Fiat tie-up avoiding executive pay off

Posted on Wednesday, 13 May 2009 , 13:05:52 byEmil

Filed under fiatchryslerexecutivepayFiatChrysler

Chrysler-Fiat tie-up avoiding executive pay off

By calling all its top executives of the all-new Fiat-Chrysler contract Fiat employees, and not the employees of Chrysler, the Detroit/Milan tie-up will avoid U.S. Treasury executive pay restrictions. The Treasury confirmed in February that firms receiving government help would have to reach a top executives limit of 500,000 Dollars in compensation, the restricted stock shares are not included.

As part of the 4.1 billion Dollars in low-interest loans from government Chrysler received, the carmaker agreed to limit the pay of its top 25 executives - plus those executives were forced on agreeing that they couldn't make claims against government for the brand new rules.

Detroit Free Press states the top officers out there will be deemed employees of Fiat who are now 'seconded' to Chrysler. They will take the pay from Fiat, and not Chrysler, that will help all of them avoid the salary cap $500,000. Sergio Marchionne - Fiat CEO’s compensation was around 4 million Dollars last year – lot more than the counterparts in Detroit, but typical (fairly) for someone that leads a profitable carmaker.