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MILAN — The heirs of the late Fiat Chrysler Automobiles CEO Sergio Marchionne received shares in the automaker worth at least 21.6 million euros ($23.5 million) in 2019, according to FCA’s annual report.
FCA’s current CEO, Mike Manley, received compensation totaling 13.28 million euros ($14.45 million).
The sum received by the heirs also was more than the compensation package of General Motors CEO Mary Barra, who received $21.6 million last year.
FCA said the 1,951,457 shares were delivered as part of its employment agreement with Marchionne, who died at age 66 on July 24, 2018, in Switzerland after being hospitalized a few weeks earlier. Prior to his death, Marchionne was also CEO and chairman of Ferrari.
The shares were awarded “as a result of overachievement of performance objectives for the 2014-2018 performance period,” said FCA’s annual report, which was filed with the U.S. Securities and Exchange Commission on Feb. 25.
The delivery date of the shares was not included in the report, but even at FCA’s lowest 2019 share price of 11.05 euros, they would have been worth 21.56 million euros.
Marchionne’s heirs stand to receive even more money from FCA.
The report said other payments would be made “consistent with obligations set forth in Mr. Marchionne’s employment agreement, including his post-mandate benefit of five times his base compensation.”
His base pay in 2017, his last full year as CEO, was 3.54 million euros. Based on that, the post-mandate benefit would be worth 17.7 million euros.
The FCA report does not specify to whom the shares were delivered. Marchionne and his wife, Orlandina, had two sons, Alessio Giacomo, born in 1989, and Jonathan Tyler, born in 1994. It has been reported in Italy that the couple separated after Marchionne joined Fiat in 2004. But it is not publicly known whether they divorced.
After Marchionne’s death, a 1.6 percent stake that he held in an Italian financial holding company called Porta Romana 4 was split among Orlandina, the two sons, and Manuela Battezzato, Marchionne’s longtime partner. According to a document filed by Battezzato with the register Italian company and seen by Automotive News Europe, each of the heirs received 25 percent of the stake.
The value of the stake is not known, but the inheritance documents provide information about the identity of possible heirs in the FCA report.