Fiat Chrysler executive filed lawsuit against the company

Following an investigation into a fraud case involving Fiat Chrysler Automobiles' sales figures, Automotive News reports that the company's chief sales officer in the United States, Reid Bigland, has filed a lawsuit against FCA, alleging that he had been a scapegoat and his salary had been reduced to SECOND.

Bigland serves on the CFA Board of Directors and currently serves as the manager of Ram Brand, US Sales Manager and Chair of the Board, as well as President and Chief Executive Officer of FCA Canada. Inc., according to his biography. Hard to imagine that will be the case much longer, though.

The company has been under scrutiny due to dummy sales reports since charges began in 2016. According to the Detroit Free Press, the rudimentary practices observed in this department date back to the 1980s. According to the Detroit Free Press.

But Bigland pursue his employer is a new twist. As Automotive News explains:

"In the lawsuit, Bigland claims that the FCA leaders took revenge against him for cooperating with the investigation and reduced his salary by about 90% from the month of March. CFA executives are considering using the retention it has withheld to pay the penalties or settlements with the Securities and Exchange Commission in accordance with the complaint filed in the Oakland County Circuit Court in Michigan. "

This "90%" pay cut cost Bigland $ 1.8 million, it seems.

The Detroit News had other good ideas on the situation:

"The whistleblower lawsuit takes a rare look at an ongoing federal investigation – at least one of which is aimed at Fiat Chrysler – and exposes a private dispute between one of the manufacturer's top leaders and his employer. Meanwhile, FBI agents and the US prosecutor's office are investigating corruption cases in the US auto industry and have obtained eight convictions, including Fiat Chrysler's former vice president, Alphons Iacobelli. , who was formerly the principal responsible for the manufacturer's labor relations. "

Bigland stated that it had cooperated with federal investigators and that FCA's sales reporting practices were in place prior to his appointment as Sales Manager.

Deborah Gordon, Bigland's lawyer quoted in the lawsuit, quoted Auto News: "The SEC also suggested a resolution that would involve a penalty for FCA. Because (Bigland) did not commit any wrongdoing and that there was none, he refused to do so. "

I have contacted FCA for their comments and have not yet received a response, but the company has issued the following statement in the automotive sector:

"We note the lawsuit filed by Reid Bigland. His eligibility for incentive compensation – as that of all officers – is subject to the Board of Directors' compensation committee determining that he has met the applicable corporate and personal performance requirements. Mr. Bigland's eligibility for his award remains subject to this determination and the completion of a Board-level assessment of matters that are the subject of a government investigation (as previously disclosed by the Board). FCA) with which the FCA continues to cooperate. Beyond that, it would be inappropriate to comment on ongoing procedures or internal compensation processes. "

We will update this post if new important details come into play.