What was Sergio Marchionne's Net Worth and Salary?
Sergio Marchionne was an Italian Automotive businessman who had a net worth of $600 million at the time of his death in 2018. Before he died, Sergio Marchionne was the CEO of both Fiat and Chrysler. At the time of his death, Sergio owned around $500 million worth of shares of Fiat Chrysler, Ferrari and CNH Industrial.
Salary and Compensation
In a typical year, Sergio was paid a base salary of $11 million. That number could grow significantly with bonuses. For example, in 2014 Sergio earned a total of $72 million after overseeing a 61% increase in Chrysler's share price. In the previous year he earned around $30 million. Over the years he was also awarded stock grants that eventually totaled around 1% of Fiat by the time he died.
In July 2018, Sergio suddenly stepped down from his position due to health issues. Unfortunately he died on July 25, 2018 at the age of 66.
Early Life
Marchionne was born on June 17, 1952 in Chieti, Abruzzo, Italy. He was the son of Concezio Marchionne and Maria Zuccon. His family emigrated to Toronto, Canada when Marchionne was 13 years old and he became a dual-citizen. He attended St. Michael's College School and then studied philosophy at the University of Toronto. He then earned a bachelor's degree and an MBA from the University of Windsor as well as a law degree from Osgoode Hall Law School of York University.
Early Career
In 1983, Marchionne worked as a tax specialist for the company Deloitte & Touche in Canada. He remained in the position until 1985 when he transitioned to work at the Lawson Mardon Group until 1988. In 1989, he became the Executive Vice President at Glenex Industries before moving to Acklands Ltd., where he held a similar position. He then returned to the Lawson Group in 1992 and remained there while it was acquired by Algroup in 1994. He then moved to Zurich to work at the headquarters of Algroup and became Chief Executive Officer of the company in 1997. He stayed with Algroup until 2000, when he took the lead position of the Lonza Group in Basel, remaining there until 2002. He then became the CEO and Managing Director of SGS S.A. of Geneva.
Fiat
In May of 2003, he was elected as an independent member of the Board of Directors of Fiat S.p.A. He then was appointed Fiat's CEO in 2004. In June of 2009, Chrysler was emerging from Chapter 11 bankruptcy. The Fiat Group received a 20% stake in the Chrysler Group and Marchionne was appointed the CEO, replacing Robert Nardelli. In July of 2011, after Fiat purchased the ownership interests in Chrysler held by Canada and the US Treasury, Fiat's take in Chrysler increased to 53.5%. Marchionne was shortly after elected Chairman of Chrysler and oversaw the official merger of Chrysler and Fiat in August of 2014.
Marchionne is largely credited with helping restore Fiat-Chrysler's credibility and profitability. He earned a reputation for being quite blunt in his management style and making ruthless decisions in order to accomplish his business objectives. After taking over the company in 2014, he fired high-ranking managers immediately in order to address internal leadership issues within the company. He focused on overhauling the management structure of the company in order to reduce the layers of managers, allowing him a more direct view of what was happening in the various departments of the company.
Marchionne received a number of honors throughout his career. He was the recipient of a number honorary degrees from schools like the Polytechnic University of Turn, the University of Toledo, and the University of Windsor. In 2011, he was awarded The Deming Cup for operational excellence by Columbia Business School. The same year, the Business Council for International Understanding honored him with the Dwight D. Eisenhower Leadership Award.
After bringing the company through very challenging times, Marchionne ultimately resigned from all his positions in July of 2018, following serious complications from a surgery he had underwent.
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Personal Life and Death
Marchionne generally kept his personal life out of the public eye. However, he was married to a woman named Orlandina in his early life. The couple had two songs together, Alessio and Tyler. After divorcing his first wife, Marchionne began a relationship with Manuela Battezzato. The couple remained together until Marchionne's death.
Similar to Steve Jobs, Marchionne is known for adopting a work "uniform" of black sweaters and jeans in an effort to reduce the amount of thought he had to give to his wardrobe. He kept supplies of these pieces in all of his residences. He also was well-known for smoking a copious amount of cigarettes, remaining a chain-smoker until his death.
Marchionne's last public appearance was on June 26, 2018 in Rome, when he presented a Jeep to Italy's military police. Fiat-Chrysler then announced that Marchionne had taken medical leave to go through a shoulder surgery at the University Hospital of Zurich. They announced on the day of the surgery that he would not be returning to his position due to post-surgery complications. After undergoing other serious complications, Marchionne died on July 25, 2018 at the age of 66. While reports about his exact cause of death vary, some report that the complications he suffered after the surgery were related to an underlying cancer. According to the hospital, Marchionne had been treated for a serious illness during the preceding year, which was confirmed by members of his family. He had kept his illness quiet, as Fiat-Chrysler was unaware of his health condition until just weeks before his death.
Following his death, many tributes were made to Marchionne, in Europe and North America. The Instituto Sergio Marchionne High School was opened in Amatrice, Italy in November of 2019 by John Elkann, the CEO of Ferrari, to honor Marchionne's legacy. He also was named the 2019 World Car Person of the Year at the Geneva Motor Show in March of 2019 and was inducted into the Automotive Hall of Fame in July of 2019.
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