VW News: As the Diesel Emits: Volkswagen Says Executive Bonuses Will Be Cut

[William Maley]

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A number of Volkswagen executives will not be seeing their full bonus for 2015. In a statement today, Volkswagen announced bonus payments for top executives will be cut "significantly." This announcement comes a week after it was revealed that Volkswagen Group Chairman Hans Dieter Poetsch would be getting about 10 million euros (about $11.4 million) as compensation for stepping down as the company's CFO.

 

News about this bonus angered Volkswagen's labor leaders and the state of Lower Saxony, Volkswagen's second-largest shareholder. They argued Volkswagen should just scrap the bonuses since Volkswagen could experience more financial pains due to the diesel emission scandal.

 

"Supervisory Board and Management Board jointly agreed that – given the current situation of the company – a signal should also be sent with respect to the topic of the Management Board's remuneration," said Volkswagen in a statement.

 

Volkswagen hasn't said how much the bonuses will be cut, but a source tells Reuters that it will be around 30 percent. Sources also reveal that further measures are being discussed to reduce variable pay even further, but that might be enough resolve the dispute with the union leaders and Lower Saxony.

 

Volkswagen's supervisory board will make a decision on the cuts at its next meeting later this April.

 

Source: Reuters, Volkswagen

 

Press Release is on Page 2

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Volkswagen AG informs on Wednesday:
"Supervisory Board and Management Board jointly agreed that – given the current situation of the company – a signal should also be sent with respect to the topic of the Management Board's remuneration.
Different models which would constitute a reasonable and fair solution for all parties involved are currently discussed and coordinated.
As a consequence, this would lead to a significant reduction of the variable remuneration. This would also subsequently apply to Mr. Poetsch at his own request.
The individual compensation components will be adopted in the forthcoming Supervisory Board meeting and will be published in the annual report on 28 April."

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[G. David Felt]

Unions have this right, at this point NO BONUS should be paid out as VW is clearly not selling like they used to and they lied to the point of clearly hurting the company world wide. All Bonuses should be canceled for 2015 and 2016.

[Miradart]

I haven't heard about it, but does anyone know if the bonuses that went out to those who were in charge when the fraud was being developed, is being asked for back?  You'd think they would at least ask.

[G. David Felt]

I have wondered about the same thing and have not found anything that shows the 35 million bonus that went out to the CEO who then stepped down a few months later was returned. I doubt it.