German FinMin Criticizes VW Management Over Bonuses
Economy, Auto

German FinMin Criticizes VW Management Over Bonuses

Germany's Finance Minister Wolfgang Schaeuble has criticized the executive board of scandal-ridden carmaker Volkswagen for not waiving bonuses despite bringing the company to the brink of collapse.
"I have no sympathy for managers who first drive a large blue chip-listed company into an existence-threatening crisis and then defend their own bonuses in a public debate," Schaeuble told German weekly Frankfurter Allgemeine Sonntagszeitung, Reuter reported.
"That shows that something is not working."
Volkswagen plans to pay the 12 current and former members of its management board €63.24 million ($72.44 million) for 2015, a year when Europe's largest carmaker posted a record loss due to legal and compensation costs for cheating diesel emissions tests. The company withheld a small part of bonus payments but will award them at a later date if certain performance criteria are fulfilled, including a recovery of the Volkswagen's share price.
The bonus payouts have sparked public outrage in Germany and a spat within Volkswagen's supervisory board.
Lower Saxony, VW's second-largest shareholder, had called for executive bonuses to be scrapped or cut as Europe's largest automaker counts the multibillion-euro costs of "Dieselgate".
Joerg Bode, a former supervisory board member who had represented Lower Saxony, told weekly Welt am Sonntag that ex-CEO Martin Winterkorn and his colleagues should pay back the part of the bonuses that had been generated by "cost cuts through fraud".
Current supervisory board member, Bernd Osterloh, said last week that the carmaker should look beyond contractual obligations and that the management board should volunteer to cut their bonus payments.
"It is also about morals," he had said.
Osterloh also said that the supervisory board should also discuss changes to its own remuneration system once the dieselgate scandal has been resolved.
"As soon as business is back to normal, we should think about changing the (remuneration) system (of the supervisory board)," Osterloh was quoted by Welt am Sonntag as saying.
A swift change to fixed salaries and abolishing variable pay components tied to dividends would be a wrong signal as that would effectively lead to a hike in remuneration, the Volkswagen labor chief told the paper.
Following its record 2015 loss, VW had slashed its dividend to €0.17 per preferred share from €4.86.

Short URL : http://goo.gl/Qw2K1q
  1. http://goo.gl/li8Hux
  • http://goo.gl/TFpECt
  • http://goo.gl/gc2Xff
  • http://goo.gl/rUFJaX
  • http://goo.gl/ZUPvHl

You can also read ...

German firms, especially those without business links to the US, want to continue their Iran business.
While Germany’s big banks are studiously avoiding Iran-related...
New Rules Allow  Direct Forex Sale
Businesspeople that have validated their purchase orders are...
Iran is the world’s biggest saffron producer and accounts for more than 90% of the global production.
Iran Mercantile Exchange launched saffron futures trading for...
Banking Amendments Approved
The Money and Credit Council approved the Central Bank of Iran...
Iran Khodro Expanding Presence in Iraqi Market
Iran’s largest carmaker, Iran Khodro, is set to export 6,000...
Uber Plans Taxi-Hailing  in Japan
Uber Technologies plans to launch its first taxi-hailing pilot...
Tesla Admits Model 3 Braking Issue, Promises Fix
Tesla Inc’s Chief Executive Officer Elon Musk admitted on...
Prices have been jacked up by car dealers and some makers by 6-22% only in the past few weeks.
Authorities are set to ratify new car prices for models...