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Hedge Fund Calls for Executive Pay Cuts at VW
A fund that owns €1.2 billion ($1.4 billion) of Volkswagen AG shares blames VW’s diesel emission scandal on excess compensation and “corporate excess on an epic scale."
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A fund that owns €1.2 billion ($1.4 billion) of Volkswagen AG shares blames VW’s diesel emission scandal on excess compensation and “corporate excess on an epic scale.”
TCI Advisory Services LLP is headed by Christopher Hohn, described by the Financial Times as Europe’s most aggressive activist investor. He complains that rich payouts have encouraged VW’s leadership to take risks that have contributed to the company’s sagging productivity and profits.
Last year VW reported a record €1.6 billion ($1.8 billion) net loss, caused primarily by the mounting regulatory, legal and recall costs of fixing 11 million diesels the company admits rigging to cheat emission standards. FT says Hohn has demanded that VW’s management and supervisory board overhaul the company’s approach to paying its top executives.
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