Via: Automotive News
Mike Manley, CEO of Fiat Chrysler Automobiles, sold over a quarter of his shares in FCA on Tuesday, one day after FCA announced a merger offer for Renault. Manley declared the sale in a filing to the Dutch financial markets authority, AFM. FCA is a Dutch-registered corporation.
Shares in FCA and Renault both jumped Monday, with FCA gaining 8 percent to €12.37 ($13.85) in Milan and Renault rising 12 percent to €56.03 in Paris. Wall Street was closed Monday for Memorial Day, but FCA’s New York-traded shares shot up Tuesday, quickly aligning to the Milan price.
In his filing to the AFM, Manley declared selling 250,000 shares at an average price of $13.85 for a total value of $3.5 million. An FCA spokeswoman said Manley sold the shares to “cover a personal financial obligation.”
The FCA proposal to Renault, which is being reviewed by the Renault board, did not make any reference to the merged company’s governance and management. According to Reuters, FCA Chairman John Elkann could become chairman of the new entity, while Renault Chairman Jean-Dominique Senard would be CEO. According to the Financial Times, Manley is expected to be named COO.
The sale of FCA shares by Manley this week is not his first. According to filings to the AFM, since becoming CEO of FCA on July 21, just days before the death of his predecessor, Sergio Marchionne, Manley has received 1,388,582 shares as one-time grants and within the company’s incentive programs.He sold 346,423 shares in various transactions from March 14 to March 22, then 97,753 on May 9.
Manley has so far sold 694,176 shares — almost half of the total received — grossing almost $10 million. That amount does not consider income taxes Manley must pay on his compensation or any fees on the transactions.
