Paolo Cantarella, who resigned as CEO of Fiat SpA last week, will receive a severance package estimated at close to 20 million.
Cantarella's deal was actually 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 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 - approximately 15 million - over 20 years. Because he held the job for more than six years, he will receive a proportion of the maximum amount - or about 10 million. That is in addition to the nearly 10 million he will be paid now.
Company sources confirmed that Cantarella's package will total about 20 million.