VW Cuts Bonuses Amid Diesel Emissions Scandal – New York Times

BERLIN — Volkswagen said about Wednesday that its leading managers’ bonuses would certainly be reduce significantly, saying it required to send a signal about executive pay after the automaker’s diesel emissions scandal.

The company, which has actually not yet released earnings figures for 2015, said in a statement that “various models, which would certainly constitute a sensible and reasonable solution for all of parties involved,” were being discussed.

“As a consequence, this would certainly result in a considerable reduction of the variable remuneration,” Volkswagen said.

The low bonuses, for 2015, use to the management board, including the chief executive. The supervisory board, which is the German equivalent of a board of directors, would certainly not be affected, the firm said, along with the exception of Hans-Dieter Pötsch, the Volkswagen chairman that was the company’s chief financial officer until late last year. This was at his request, the firm said.

The statement about Wednesday followed German news reports in recent days regarding disagreements at the firm over the extent to which managers need to have actually their bonuses reduced.

Graphic

Exactly how Volkswagen Is Grappling along with Its Diesel Deception

Volkswagen has actually accepted that 11 million of its vehicles were equipped along with software that was used to cheat about emissions tests. The firm is now contending along with the fallout.



OPEN Graphic

News of the diesel emissions scandal broke about Sept. 18, once the Environmental Protection Agency in Washington said that Volkswagen had installed software about 482,000 cars that was used to cheat about emissions tests. about Sept. 22, Volkswagen said regarding 11 million diesel vehicles worldwide had the software.

Martin Winterkorn, the longtime chief executive, resigned about Sept. 23, saying he was performing so in the passions of the company, however that he was not “aware of any sort of wrongdoing about my part.” He was replaced by Matthias Müller.

Continue reviewing the main story

The firm did not offer bonus figures.

Volkswagen said it would certainly consist of details regarding the relocate once it releases its annual report, about April 28.

Stephan Weil, the governor of Reduced Saxony and a member of Volkswagen’s supervisory board due to the fact that his point out is a severe shareholder, told the legislature in Hanover that “the expectations of the public” had to be taken in to account.

In 2014, Mr. Winterkorn’s remuneration totaled 15.86 million euros, or $18.1 million, of which €1.62 million was his fixed salary. Mr. Pötsch made regarding €6.8 million, many of which was likewise from variable pay.

Volkswagen’s 2015 outcomes were originally scheduled to be released about March 10, however the firm delayed the announcement to the end of April due to “open questions” regarding the costs of the emissions scandal.

Continue reviewing the main story