VW says top executives ready to accept ‘sharp cuts’ in bonuses

Frankfurt / AFP

Volkswagen announced on Wednesday that its top executives were willing to accept “sharp reductions” in their annual bonuses as the embattled carmaker struggles to stem the fallout from its massive engine-rigging scandal.
“The supervisory and executive boards are in agreement that given the current situation, a signal should be sent regarding the issue of management board pay,” VW said in a statement.
“Various models are currently being discussed which will represent a suitable and fair solution for everyone,” the statement continued.
“In consequence, this will lead to a sharp reduction in the variable remuneration,” it said.
The details will be agreed at a supervisory board on April 22 and published in VW’s annual report on April 28, the group added.
Earlier the regional state premier of Lower Saxony, where VW is based, had announced that board members were willing to accept “sharp cuts” in their annual bonuses.
“Already in November, chief executive Matthias Mueller expressed an expectation that belts would have to be tightened,” prime minister Stephan Weil told the regional parliament in a regular update on the VW scandal.