Part of yesterday’s announcement that Chrysler is going to enter Chapter 11 bankruptcy proceedings is that Chrysler’s chairman and chief executive, Bob Nardelli will step down once the restructuring process is complete.
When Nardelli leaves Chrysler, he will leave with nothing. Meaning he will not get a hefty severance package.
I’ll pick up my pencil and walk out the door”, Nardelli said on Thursday.
In contrast when Nardelli left his last post at Home Depot he made $32 million in his last year and also received a severance package worth $210 million. Nardelli did not have a contract at Chrysler when he took control of the automaker in August 2007.
Following the completion of the restructuring process, Fiat will control 20 percent of Chrysler, which could rise up to as much as 35 percent as Fiat pays off the government loans that Chrysler received. Nardelli’s replacement will be decided upon by Chrysler’s new board and with Fiat’s approval.
Full Story: Financial Times
Chrysler Files for Chapter 11, but Comes to an Agreement with Fiat