After becoming the poster boy of excessive executive compensation upon
receiving a $210 million severance from Home Depot Inc., new Chrysler chief
Robert Nardelli reportedly will collect a nominal salary of $1 a year in his
new role,
according
to the Financial Times, citing a source familiar with his pay package.
Instead, his compensation will be entirely based on incentives, which Nardelli
alluded to when asked about his compensation package, saying "My success is
rooted in the success of the company."
Despite Nardelli's past, his new compensation package should not shock anyone
familiar with private equity. After all, as
The
Deal's David Carey wrote in June: "In short, private equity firms take
seriously the principle to which many public companies pay only lip service —
that compensation should reflect results for shareholders."
Continue reading below
Meanwhile, the Nardelli hiring has the blogosphere alight not just with talk
about his compensation.
Gary
Weiss and
Talking
Business News were amazed at the business press' alleged short-term memory
concerning Nardelli's time with Home Depot. Both blogs offer some examples of
gross inaccuracies in various stories found on the Web.
Finally, the writers at
AutoBlog
offer some additional speculation about what Nardelli's hiring means for
Chrysler president Tom LaSorda's future at the company. To save you time,
AutoBlog expects his days are numbered, which really is no surprise
considering the demotion — LaSorda had been the CEO of Chrysler until
Nardelli's hiring. However, AutoBlog has posted some video of Monday's press
conference with Nardelli and LaSorda, making a click through worth your while
to see Nardelli treat LaSorda like a little boy. —Matthew Wurtzel
See
story from the Financial Times
See
compensation story from The Deal newsweekly
See
post from AutoBlog
See
post from Talking Business News
See
post from Gary-Weiss
See
post from Dealbook
See
Monday's post from Dealscape
See
Chrysler Dealwatch
Tags:
Chrysler,
Cerberus
Capital,
acquisition,
deals,
m&a,
mergers,
private
equity
