Volkswagen to Cut Personal Bonuses in Management Compensation Overhaul
December 13 2019 - 8:49AM
Dow Jones News
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.
Write to Max Bernhard at max.bernhard@dowjones.com;
@mxbernhard
(END) Dow Jones Newswires
December 13, 2019 08:34 ET (13:34 GMT)
Copyright (c) 2019 Dow Jones & Company, Inc.
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