FRANKFURT (April 13, 2016) — Volkswagen Group Chairman Hans Dieter Poetsch and other top executives will have their 2015 bonus payments cut “significantly,” the auto maker said April 13.
VW's second-largest shareholder — the German state of Lower Saxony — wants management bonuses to be scrapped altogether while VW's powerful labor leaders have also been pushing for bonuses to be scrapped or lowered as the auto maker counts the multi-billion-euro costs of its emissions-rigging scandal.
In a statement April 13, VW said the supervisory board and management agree that the company needs to send a signal on top management pay.
Various models are being discussed that would be “appropriate and fair for everyone,” the statement said, adding that the move would lead to a “significant reduction of variable pay.”
The statement gave no figures for the cuts but Reuters reported that the management board has accepted cuts of at least 30 percent in bonus payments.
Further measures are being discussed to achieve an additional reduction in variable pay but the cuts may not go far enough to resolve the dispute, sources close to the supervisory board told Reuters.
One option may be that VW executives invest in the car maker, Reuters said, quoting a source familiar with the bonus negotiations.