outgoing Ferrari chairman Montezemo gets €27 million severance

Outgoing Ferrari boss Luca Cordero di Montezemo will receive a combined severance package of €26.95 million ($34.78 million), with nearly half to be paid in a lump-sum by next February.

Fiat, which owns 90 percent of Ferrari, said Wednesday that Montezemolo will leave the company on Oct. 13., the day the newly merged Fiat Chrysler Automobiles (FCA) is due to be listed in New York.

Sergio Marchionne will add responsibility for Ferrari to his role as Fiat Chrysler CEO.

In a statement, Fiat said Montezemolo, 67, will receive a lump-sum payment of €13.25 million by Jan. 31, 2015 in return for agreeing not to compete with Fiat until March 2017.

Fiat also said Montezemolo will receive €13.71 million, which is equivalent to five times his annual salary as the Ferrari boss, payable in 20 years.

Montezemolo is quitting Ferrari after he and Marchionne clashed over Ferrari’s future and the Formula One team’s poor results.

Montezemolo, who has been Ferrari chairman since 1991, has wanted to keep Ferrari autonomous, while Marchionne has pushed to better integrate the business within Fiat to boost the group’s move into the premium end of the car market as it seeks to rival the likes of Volkswagen and BMW.