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Sergio Marchionne, Chrysler CEO, Turns Down Salary, Bonus For 2011

Posted: 03/ 7/2012 3:16 pm Updated: 03/ 7/2012 4:10 pm


DETROIT, March 7 (Reuters) - Sergio Marchionne, the chief executive of Chrysler Group LLC, declined a salary and bonus for 2011 when the smallest U.S. automaker repaid $7.6 billion in loans stemming from its bankruptcy.

It was the second straight year that Marchionne elected not to take a salary or bonus for his work at Chrysler, the U.S. automaker he has run since it emerged from bankruptcy in 2009.

But Marchionne is paid for his work as CEO of Fiat SpA , the Italian automaker that owns 58.5 percent of Chrysler.

Chrysler reimbursed Marchionne for cleaning, utilities and security expenses at his condominium near the company's Auburn Hills, Michigan, headquarters, according to a filing with the U.S. Securities and Exchange Commission late on Tuesday.

Chrysler also paid his insurance and association fees at the condominium in 2011. It said the costs were on par with or less than what it would have cost for Marchionne to stay at hotels.

Chrysler outperformed the U.S. auto market last year. Marchionne's hard-charging style has been credited with steering the automaker from the brink of bankruptcy and reviving Wall Street's interest.

Last May, Chrysler refinanced $7.6 billion in high-interest loans from the U.S. and Canadian governments that were extended during its unpopular 2009 bailout. In 2011, its U.S. auto sales rose 24.3 percent, while industry sales increased 10.3 percent.

But Chrysler also had its missteps last year, including the flawed introduction of its Fiat 500 small car, which fell short of sales targets by a wide margin.

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Filed by Reuters  |