Skip to main content

VW’s next bit of diesel damage control may be to cut executive bonuses

It’s not a particularly good time to be a Volkswagen executive. The ongoing diesel scandal has forced many executives to step down, and now it seems VW might cut the bonuses of those who are still around.

Fallout from the diesel scandal could cost Volkswagen billions of dollars, and labor leaders as well as the German state of Lower Saxony (the company’s largest shareholder) are calling for executive bonuses to be cut in response. The company’s supervisory board is now discussing bonus cuts, people said to be familiar with the matter told Reuters.

Recommended Videos

VW’s nine executives earned a combined 70 million euros ($80 million) in 2014, according to company records. In comparison, Mercedes-Benz parent Daimler paid its executives 37 million euros ($42 million) last year. The Volkswagen total includes 54 million euros ($61 million) in bonuses. VW is now looking into “models” that would reduce that amount, the sources said without giving specific details.

The company’s supervisory board is expected to approve some form of executive-pay compromise on April 22, and publish details with Volkswagen’s annual report on April 28. That puts the deadline for an agreement the day after a court deadline for VW and U.S. regulators to agree on a plan to actually recall nearly 600,000 diesel cars that are still producing excess emissions.

The April 21 deadline was set by U.S. District Court Judge Charles Breyer after Volkswagen missed a previous March 24 deadline. A recall plan would need to be approved by both the U.S. Environmental Protection Agency (EPA) and the California Air Resources Board (CARB). EPA Administrator Gina McCarthy recently said VW may not be able to come up with a satisfactory proposal in time.

The two agencies already rejected one plan for the 482,000 cars equipped with 2.0-liter four-cylinder engines, saying it lacked detail. A separate plan for 85,000 vehicles  with 3.0-liter V6 engines was submitted in February, but there’s been no news of it since.

Stephen Edelstein
Stephen is a freelance automotive journalist covering all things cars. He likes anything with four wheels, from classic cars…
Intuit QuickBooks summer savings have us excited for bookkeeping and more
Intuit QuickBooks Online and Payroll Indepence Day deals used by business owner

Being honest, accounting, bookkeeping, and various administrative tasks aren't exactly what most people would call exciting, even if they own a business. It's something you have to do, but not that you necessarily want to do. But you absolutely have to stay on top of it; otherwise, things could get out of hand later, like when you're filing taxes or trying to calculate expenses. As a leader in small business fintech, Intuit QuickBooks is helping over 7 million customers worldwide do precisely that. From a startup to scaling up, the Intuit QuickBooks ecosystem delivers products and services that are a core component of small business growth. Accounting, payroll, payments, capital, and even marketing assistance via Mailchimp are just a few examples of what you can expect from a QuickBooks subscription. Thanks to its current Summer Sale, you can save a never-before-seen 70% off Intuit QuickBooks plans. That offer and these prices excite us for something that, typically, wouldn't be considered exciting.

Save Now

Read more
What is Microsoft Teams? How to use the collaboration app
A close-up of someone using Microsoft Teams on a laptop for a videoconference.

Online team collaboration is the new norm as companies spread their workforce across the globe. Gone are the days of primarily relying on group emails, as teams can now work together in real time using an instant chat-style interface, no matter where they are.

Using Microsoft Teams affords video conferencing, real-time discussions, document sharing and editing, and more for companies and corporations. It's one of many collaboration tools designed to bring company workers together in an online space. It’s not designed for communicating with family and friends, but for colleagues and clients.

Read more
How to create a new team in Microsoft Teams
Example of Teams chat.

Few communication applications are as versatile as Microsoft Teams. Along with allowing you to send quick messages to teammates or launch a video chat, the software is fully integrated with Office 365 so you can optimize its performance. If you know how to use Microsoft Teams, you'll know that one of its most useful features is the ability to create a new team.

Knowing how to make a new team and how to properly organize teams makes it easy for a company to enhance productivity and streamline communication. When used effectively, Microsoft Teams is useful for both in-office and remote workers, ensuring everyone stays on the same page regardless of location.

Read more