Chrysler CEO receives no salary for 2010

By Reuters
Posted Feb. 25 at 4:53 p.m.

Sergio Marchionne, the chief executive of Chrysler Group LLC, did not receive a cash salary from Chrysler in 2010, the automaker managed by Fiat SpA revealed on Friday in a detailed filing with U.S. regulators.

Marchionne, who is also CEO of Italy’s Fiat, did receive a $600,000 stock grant for his services as a director on the company’s board from June 2009 until June 2010.

His compensation, which was approved by the U.S. Department of the Treasury, was part of a more than 300-page document filed with the U.S. Securities and Exchange Commission.

The filing provided an unprecedented look at Chrysler’s operations and risk factors to its business outlook during its second year under the management control of Fiat and as it lays the groundwork for an initial public offering the second half of 2011.

The company, which came to the brink of collapse in 2009 before filing a government-funded bankruptcy, listed the failure to clinch Department of Energy loans, its outsized exposure to higher fuel prices and its reliance on North America as risks that could hobble its nascent recovery.

Marchionne has said the DOE loans are a crucial part of its recovery plan, but a decision on the loans has come far slower than he expected.

The company applied for about $7 billion in loans, but Chrysler said it expects the amount will be “significantly less” than the figure requested in the application.

Chrysler said its failure to qualify for DOE loans could hamper its investment in new and advanced technology and make its vehicles less competitive.

Minivans, sport-utility vehicles and pick-up trucks made up nearly three-quarters of Chrysler’s sales in 2010. These vehicles made up just more than half of overall U.S. sales in 2010, Chrysler said in the filing.

Chrysler’s outsized exposure to a jump in fuel prices could sap demand for its lineup and have a “disproportionate effect” on the company compared with its rivals.

Chrysler said earlier on Friday that it would start to file annual, quarterly and period reports with the SEC for the first time in more than a decade in a bid to be more transparent.

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