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By Max Bernhard
Volkswagen AG (VOW.XE) said Friday that it would cut personal bonus payments for its about 18,000 managers globally as part of a new compensation model.
"The new remuneration system no longer includes a personal performance bonus, priority is given to the financial development of the entire company and therefore to joint performance," the German car maker said. Annual bonuses will be based on the company's operating return on sales and return on investment in the future. For long-term bonuses, previous performance indicators such as return, unit sales and customer satisfaction will be replaced by earnings per share, share price, and dividend, it added.
The new system also includes the possibility to lower or eliminate bonuses "in the event of individual wrongdoing--with a view to fostering integrity and compliant conduct," Volkswagen said.
The new remuneration model is based on the system for executives and top management, which had been previously revised.
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(END) Dow Jones Newswires
December 13, 2019 08:34 ET (13:34 GMT)
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