His heirs stand to make $90 million in stock this year.
Among the various hats that the late Sergio Marchionne wore were those of chairman and chief executive of Ferrari. And that came with certain remuneration benefits. You'd figure those benefits would have ceased since his passing. But according to the latest, they haven't.
Automotive News reports that the departed executive's heirs will receive 675,000 shares in Ferrari, currently valued as high as $90 million. And they're not outstanding pay for his tenure at the helm of the exotic automaker, either. This stock benefit is for after he passed in July.
Marchionne is survived by his wife Orlandina (from whom he separated in 2004) and his two sons Alessio Giacomo (30 years old) and Jonathan Tyler (25) – all of whom likely inherited a great deal from their successful and well-compensated late ex-husband and father.
In addition to serving as chairman and CEO of Ferrari, Marchionne held a number of other roles at Fiat Chrysler (the group he founded through the merger of its two constituent automakers) and various subsidiaries and spin-offs. But Ferrari appears to be the only one still paying stock benefits to his estate.
Neither FCA nor CNH Industrial (the truck and equipment manufacturer spun off from the automaker in 2012) appear to be still paying Marchionne's estate.
"Such a provision is clearly legal but very unusual," legal expert Francesco Rotondi told AN. "The transfer to a manager's heirs of certain rights to incentive compensation is quite common among corporations when the incentives have already vested; in other cases, managers are often granted the right to a share in the performance of the company after they left. The contract between Ferrari and Mr. Marchionne, though […] appears to envisage a sort of takeover by heirs of the manager's position in the incentive program."