Volkswagen has decided to cut the bonuses of top brass within the company to help send a message to its workers and the world.
The cut will apply to 2015 bonuses and will affect the management board, who are the day-to-day managers at VW including the CEO. The supervisory board, which is essentially the board of directors, will not be affected except for chairman Hans Dieter Poetch as he was the company’s CFO until late last year and has chosen to have his bonus cut.
In 2014, VW’s top nine executives made about $80 million, most of which came from bonuses.
VW has admitted to installing software meant to fool emissions tests in over 11 million cars, 600,000 of which are in the U.S. Those cars must be fixed by VW, but the company has yet to release how it will be going about the fix.
The “supervisory board and management board jointly agreed that — given the current situation of the company — a signal should also be sent with respect to the topic of the management board’s remuneration,” said VW in a statement.
VW plans to release specific figures in its 2015 earnings report, which is coming on April 18. Initially, VW was going to release its 2015 financial results on March 10, but the company moved that date to the end of April thanks to “open questions” about the cost of the emissions scandal.
Discuss this story at our VW Forum