Chrysler 2015 Annual Report Download - page 127

2015 | ANNUAL REPORT 127
Other Benefits
We offer customary perquisites to our CEO and Chairman. The Executive Directors may also be entitled to usual and
customary fringe benefits such as personal use of aircraft, company car and driver, personal/home security, medical
insurance, accident and disability insurance, tax preparation, financial counseling and tax equalization. The Company’s
Remuneration Policy also enables the Compensation Committee to grant other benefits to the Executive Directors in
particular circumstances.
Tax Equalization
Action Taken Rationale
Tax Equalization for Executive Directors Maintain respective home country taxation on all employment
income, in the event of incremental taxes
The Executive Directors, by nature of their role in our geographically diverse company,may be subject to tax on their
employment income in multiple countries.Given the Executive Directors are subject to tax on their worldwide income
in their respective home countries,the Company studied the prevalent practice for handling incremental tax costs
incurred by globally mobile executives.Based on that analysis, in 2015, the Board decided to tax equalize all of the
employment earnings, including equity income, to the Executive Directors’ respective home country effective tax rate,
if incremental taxes over their home country tax rate would arise.
Stock Ownership
Our Board recognizes the critical role that executive stock ownership has in aligning the interests of management
with those of shareholders. While the Company does not maintain a formal stock ownership policy, the CEO’s stock
holdings, when viewed as a multiple of his 2015 base salary, was significantly greater than common market practice
for 2015.
* The multiple shown above is based on shares held and excludes unvested outstanding shares and represents holdings as of December 31,
2015 using the NYSE closing stock price of U.S.$13.99.
Multiple of base Salary
Typical market
practice stock
ownership level
FCA CEO 2015 stock
ownership level as a
multiple of base salary*
MARCHIONNE
CEO x1 x10x3 ... ...x2 x11 x21... x20 x51