Chrysler Execs Dodge Bailout Pay Caps

As automaker cuts 3500, top employees will draw pay from Fiat

By Jason Farago

Posted May 13, 2009 5:52 AM CDT

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Chrysler Execs Dodge Bailout Pay Caps — Sergio Marchionne, Manager of Fiat car company, will become the chief executive of Chrysler after the US automaker emerges from bankruptcy, a Fiat spokesman confirmed Thursday, May 7, 2009. (AP Photo/Michael Sohn, file)

Bankruptcy documents filed by Chrysler show that the chief executives of the bailed-out automaker will avoid executive pay restrictions—by declaring themselves employees of Fiat. Despite new Treasury rules that cap pay at $500,000 for execs whose firms received "extraordinary assistance," but Chrysler's top officers will be able to take pay from its new Italian owner. The automaker is nevertheless trying to cut 3,500 jobs, reports the Detroit Free Press.

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