Mexican Media Brands
VW Caps Executive Compensation
Volkswagen AG says it will limit the future annual compensation for its CEO at €10 million ($10.6 million) and other top executives at €5.5 million ($5.8 million).
#economics
Share
Volkswagen AG says it will limit the future annual compensation for its CEO at €10 million ($10.6 million) and other top executives at €5.5 million ($5.8 million).
The move aims to placate public and shareholder pressure after VW executives grudgingly agreed last year to cut bonuses for 2015 by 30% in spite of the company’s diesel emission cheating scandal and cost-cutting campaign.
The new scheme will trim by 30% the proportion of total compensation contributed by bonuses. It also will raise the proportion represented by fixed salary as much as 30%, according to the company. VW says it won’t pay bonuses at all if group operating profit stays below €9 billion, up from the previous €5 billion threshold.
VW has based bonuses in the past on its financial performance for the preceding two years. The company hasn’t provided details about the new system but says it will lower the maximum potential compensation by as much as 40%. VW is expected on March 14 to report last year’s payout.
RELATED CONTENT
-
Inside Ford
On this edition of “Autoline After Hours” Joann Muller, Detroit bureau chief for Forbes, provides insights into what she’s learned about Ford, insights that are amplified on the show by our other panelists, Stephanie Brinley, principal analyst at IHS Markit who specializes in the auto industry, and Todd Lassa, Detroit Bureau Chief for Automobile.
-
On Lincoln-Shinola, Euro EV Sales, Engineered Carbon, and more
On a Lincoln-Shinola concept, Euro EV sales, engineered carbon for fuel cells, a thermal sensor for ADAS, battery analytics, and measuring vehicle performance in use with big data
-
Porsche Doubles EV Target for 2025
Porsche AG says about half the vehicles it sells by 2025 will be equipped with hybrid or all-electric powertrains, twice the ratio it forecast four weeks ago.