Volkswagen CEO Might Cut-Off Board Bonuses

VW CEO Matthias Müller

VW CEO Matthias Müller

 

12 April 2016, Germany :

Volkswagen Chief Executive Matthias Mueller will push for a significant reduction in bonuses for the carmaker’s management board on Monday, sources familiar with the matter told Reuters.

The company’s top executives are being urged to make a strong show of solidarity with workers, investors and customers in light of the huge costs from the emissions-cheating scandal, according to two people familiar with the situation.

Volkswagen is still trying to recover from the diesel emissions scandal.

The proposal being put forward at a supervisory board steering committee meeting follows criticism from one of Volkswagen’s major shareholders, the state of Lower Saxony, about intentions to pay bonuses to top managers while the company grapples with the diesel emissions crisis and prepares to cut costs elsewhere.

Bonuses for senior managers have become a flashpoint in an escalating dispute with powerful labor leaders at Europe’s biggest carmaker as it prepares to finalize a new strategy.  Volkswagen is still trying to recover from the diesel emissions scandal.

Volkswagen Chief Executive Matthias Mueller will push for a significant reduction in bonuses for the carmaker’s management board on Monday, sources familiar with the matter told Reuters.

The proposal being put forward at a supervisory board steering committee meeting follows criticism from one of Volkswagen’s major shareholders, the state of Lower Saxony, about intentions to pay bonuses to top managers while the company grapples with the diesel emissions crisis and prepares to cut costs elsewhere.

Bonuses for senior managers have become a flashpoint in an escalating dispute with powerful labor leaders at Europe’s biggest carmaker as it prepares to finalize a new strategy. Separately, Germany’s Bild am Sonntag newspaper said in an unsourced report that Mueller would ask board members to accept a voluntary bonus reduction of about 30%.

Source : reuters
Image : getty

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