HAMBURG Feb 6 Volkswagen is
planning to cap the pay package of its chief executive at 10
million euros ($10.7 million) and keep pay for management board
members below that, a source familiar with the matter said.
Under the plans, executives would receive a higher fixed
salary and lower variable pay, and bonuses would be tied to
dividends and the Volkswagen (VW) stock price, business daily
Handelsblatt reported earlier on Monday.
Executives would also invest in company shares, which would
then be held for several years, the paper added.
VW's supervisory board has been working on new executive pay
rules for some time. The 20-member panel is due to discuss the
plans at its next meeting on Feb. 24, the source said.
A spokesman at VW's Wolfsburg-based headquarters declined to
comment, as did the carmaker's works council whose members
occupy about half the supervisory board's seats.
The company has come under fire over executive pay before.
Former CEO Martin Winterkorn used to be the best paid CEO among
German blue-chip firms, receiving just under 16 million euros in
2014. In 2015 that was halved but he still received 7.3 million
euros in fixed and variable compensation, despite the company's
stock plunging on the back of an emissions scandal.
Last month, the carmaker's compliance chief left after just
over one year in the job following a falling out, reportedly
receiving around 12 million euros.
($1 = 0.9317 euros)
(Reporting by Jan Schwartz; Additional reporting by Andreas
Cremer.; Writing by Victoria Bryan; Editing by Mark Potter and