TURIN, Italy -- Paolo Cantarella, who resigned as CEO of Fiat S.p.A. last week, will receive a severance package estimated at close to 20 million euros, or about $18.9 million at current exchange rates.
Cantarella's deal was negotiated in February 2001.
At that time, Fiat's board of directors approved a severance package equivalent to three years' pay.
Cantarella, who was named CEO in February 1996, earned 3.35 million euros in 1999, 3.2 million in 2000 and 3 million in 2001.
In addition, he will receive a sum payable over 20 years proportionate to the number of years he served as CEO.
If Cantarella had held the job for 10 years, he would have received a maximum of five years' pay, which would have been approximately $14.2 million - over 20 years. Because he held the job for six years, he will receive about 60 percent of the maximum amount.