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VW Cuts Pay for 14 Members of Its Works Council
Volkswagen AG has lowered the salaries and suspended bonus payments to 14 members of its works council, Reuters reports.
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Volkswagen AG has lowered the salaries and suspended bonus payments to 14 members of its works council, Reuters reports.
The cuts, which include council chief Bernd Osterloh, come as German prosecutors probe claims of excessive compensation. German business law states that wasting corporate funds is a legal breach of fiduciary duty.
Last month investigators raided the offices of VW supervisory board Chair Hans Dieter Poetsch and the company’s senior executives for finance and human resources. Prosecutors were looking for evidence of irregularities related to compensation and tax payments, according to media reports.
Reuters says Osterloh’s annual compensation has reached as much as €750,000 ($890,000). VW insists all payments were legitimate and in keeping with general German practices. CEO Matthias Mueller says the company has trimmed payouts to works council members as a precaution until the investigation is completed.
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