Volkswagen To Cut Bonuses After Emissions Scandal Pressure

VW, VW Lawsuit

Volkswagen are preparing to make major bonus cuts for senior managers as they continue to repair internal disputes after the emissions scandal.

VW’s second biggest shareholder, Lower Saxony, have combined with the organisation’s labour labours to demand that executives have their bonuses scrapped altogether.

In 2014, VW employed nine executives who received €54,000,000 in variable pay and around $80,000,000 in compensation, which is practically double what the managers at Daimler were paid in the same year.

The company is also currently discussing models that could see variably pay significantly reduced.

Examples Need To Be Set After Emissions Scandal

A source close to Volkswagen said that “in light of the company’s current situation, an example must be set on the matter of executive compensation.”

VW, though, have so far declined to comment.

Cuts to bonuses would also affect Hans Dieter Poetsch, VW’s former finance chief who took a relatively low-paid job as chairman towards the end of last year but struck a deal so that he would be generously compensated for the rest of his CFO contract, which doesn’t expire until the end of 2017.

The deal would have seen Poetsch bag around €10,000,000, figures which have caused anger among labour unions and politicians.

Pressure has been growing on Volkswagen to slash executive bonuses, and a compromise is due to be discussed by the supervisory board at the end of April.

Will Titterington
  • 14th April 2016

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