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Was Montezemolos 27,000,000 euro payout excessive

Discussion in 'Formula 1' started by David O'Reilly, Sep 14, 2014.

  1. Yes

    3 vote(s)
    23.1%
  2. No

    10 vote(s)
    76.9%
  1. David O'Reilly

    David O'Reilly
    A bad quali means I can go forwards in the race.

    After 23 years at Ferrari Luca di Montezemolo has left. With approx 2 years of his contract to run he has been paid EU27m. 13m of which was a "No Compete" payment to prevent him from doing business that would compete with the Fiat group.

    In my view the settlement is excessive to a pornographic standard for a company whose core components Fiat and Chrysler have both benefitted from public monies in the past. For one that resides in a country with significant economic challenges it is outrageous.

    Luca di Montezemolo did a lot for Ferrari to modernise it. After buying a 348 to celebrate his succesful organisation of the 1990 Italian World Cup, quality issues famously caused him to tell the company that it was a "heap of ~~~~". If legend is correct the company said "if you think you can do better then you have a job." The first product of his tenure was the gorgeous 355. Many other stunning products followed. He did a great job.
    However over 23 years I am sure he was richly rewarded and is now a wealthy man.

    Lets talk about the amount. What is 27 million euro?
    Fiat is Italys largest private employer.
    That would conservatively employ 1125 Italians for a year. Or 112 Italians for 10 years, or if you like 12 Italians for 100 years?
    If as some predict he may want to move into politics is it wise to accept such a payment?
    Is it reasonable that one man paid handsomely for his work who then reaches the end of his tenure be paid hugely "to garden"?

    Here in the UK we have endured a culture of masive payouts for a chosen few in publicly owned organisation such as the BBC. It seems to have no been seen to be so enraging to the taxpayer that finally has slowed or stopped.

    Some say that it was cleaning house and re structuring to facilitate a smooth stock flotation for the parent company FCA next month. The new holding company is to be incorporated in the Netherlands; FCA will be listed on the New York Stock Exchange with an additional listing on the Mercato Telematico Azionario in Milan to follow. (Source Wikipedia)

    So what do you think?
    Should he have got 27 million to leave?
     
    • Winner Winner x 1
  2. Bram

    Bram
    Roaring Pipes Maniacs | #27 Staff Premium Member

    Crazy sum of money for any person to receive when they leave a company regardless the amount of years he spent at the Fiat Group.

    If somebody is forced to leave for not doing his job properly anymore he should get a normal handshake. Not a golden one, just the old fashioned one that involves real hands.
     
    • Agree Agree x 4
  3. Guess a watch just wouldn't do it for him. :p
     
  4. Frederic Schornstein

    Frederic Schornstein
    TXL Racing Premium Member

    I don't really care how much he got, but these things getting excessive and honestly for companies themselfes it is not a good development. They are trying to save a lot of money on the average employee, but spend millions for the ceo's. The problem is, that someone like Montezemolo has already that much money, that he most likely won't spend spend it on anything and the money is practically dead. If a normal FIAT employee would get a bit more money, he may consider buying himself a car (maybe a FIAT) or a house and the previous owner might buy a Ferrari with it. Giving the money to the once who already can't spent their current money most likely won't increase company sales even if he does spent it he won't buy 2000 Fiats for that money, giving it to an average person most probably would lead to a few more sales for the company.
     
  5. It's all relative.
    What ever the circumstances of his departure, he and Ferrari agreed to a number.
    It's not for us to speculate.
    How much did the Ferrari branding improve and sales increased under LDM?
    That's probably the question 'driving' the sum.