Saturday, 25 February 2017

VW cracks down on executive pay after diesel scandal

Volkswagen will set caps on executive pay, the German carmaker said as it announced a return to profit for 2016 following the "dieselgate" scandal.

Under the new rules, pay will reflect financial performance more closely.

The chief executive's package will be limited to 10m euros (£8.5m), with a 5.5m euro cap for other board members.

Former chief executive Martin Winterkorn, who quit over the diesel scandal, took home 17.5m euros in 2011 because of large bonus payments.

VW reported a net profit of 5.1bn euros for last year, bouncing back from a 1.6bn euro loss for 2015 in the wake of the emissions-cheating scandal.
"While the past fiscal year posed major challenges for us, despite the crisis the group's operating business gave its best-ever performance," said chief executive Matthias Mueller after a meeting of VW's supervisory board at its Wolfsburg headquarters on Friday.

The scandal did not stop the group, which also owns the Porsche, Audi and Skoda brands, delivering a record 10.3 million vehicles last year, driven by strong demand in Europe and the Asia-Pacific region.

That allowed VW to overtake Toyota and claim the crown of the world's top-selling car maker.

Revenue was a record 217.3bn - 2% higher than 2015. The company expects that figure to rise 4% this year following a "moderate" increase in vehicle sales.

BBC     News.