VW Drops Bonuses for Supervisory Board Members

Volkswagen AG says it intends to eliminate bonuses for the 20 members of its supervisory board.

The proposal to restrict the board to fixed salaries will go before shareholders on May 10. The plan will pay the board chairman €300,000 ($318,400) per year. The deputy chair will receive €200,000, and other board members will be paid €100,000 each.

Last month VW announced it will cap overall compensation for its CEO at €10 million and other top managers at €5.5 million. That plan will retain bonuses but reduce their share of overall compensation. The company also will eliminate bonuses for years when group operating profit is less than €9 billion.

The new policies address public and shareholder pressure following bonuses for 2015 paid to executives last year in spite of VW’s diesel emission cheating scandal and a concurrent cost-cutting campaign.