Chief exec of FCA to take 50% pay cut

ROME: Fiat Chrysler Automobiles NV chief executive Mike Manley will take a 50% pay cut for three months as part of efforts to protect the company’s financial health during the coronavirus pandemic.

The head of the Italian-American automaker made the announcement in a letter to employees obtained by AFP yesterday.

The company’s annual report put Manley’s base salary at $1.4 million and his total remuneration — including retirement benefits and incentives — at $13.2 million.

“Protecting the financial health of the company is everyone’s responsibility and naturally starts with myself and the leadership of FCA,” the letter says.

FCA chairman John Elkann and members of the company’s board of directors are giving up their “remaining 2020 compensation”, it adds.

Some other executives are reducing their wages by 30% for three months.

The letter also says that “most global employees” will be asked to accept a temporary 20% pay cut “as part of this shared sacrifice”.

Manley said the decision to cut pay was taken “to avoid the lay-off of any permanent employees for the coming quarter”.

FCA has suspended operations across the United States and Europe because of the pandemic.

Massive global disruptions caused by the virus have cast doubt over FCA’s pending merger with Peugeot and Citroen’s PSA Group.

The letter to employees does not directly refer to the deal or say when the company’s production might resume. “We are both reinforcing our access to capital and being laser focused on every project, programme and expense — removing and postponing non-critical activities.”