Fiat awards outgoing Ferrari chairman Luca di Montezemolo 26.95 million euro severance

London: Fiat Chrysler`s outgoing chairman of its sports car division Ferrari will receive a combined severance package of 26.95 million euros ($34.78 million), with nearly half to be paid in a lump-sum by next February, the company said on Wednesday.

Luca Cordero di Montezemolo, chairman of Italian luxury sports car maker Ferrari, is quitting to be replaced by the boss of parent group Fiat after the two men clashed over strategy and the Formula One team`s poor results.

In a statement, Fiat said Montezemolo will receive a lump-sum payment of 13.25 million euros 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 euros, which is equivalent to five times his annual salary as the Ferrari boss, payable in 20 years.