While the whole world is in rumble due to VW AG’s emissions forgery, life seemingly goes on uninterrupted at the helm of the German group, with bosses being paid out bonuses even as the company reported its largest losses ever.
Of course, now, Volkswagen has been urged to reduce the compensation offered to a dozen of its major executives who received 63 million euros for their work last year, while the group posted record losses. Apparently activist investor TCI Fund Management delivered a letter last month, asking the company to lower the “huge sums of money” paid to top-level employees. Volkswagen incurred losses due to the Dieselgate scandal that broke in September and caused a huge drop in share value. And the financial toll is only set to increase, as the automaker has agreed to pay a $15 billion compensation package, which includes payouts and the buyout of cars fitted with emissions cheating software, in America – and that’s before any fines and legal action.
Then there’s the bill for the recalls and other actions that need to be taken in Europe and other parts of the world, with some analyst estimates calling for a total loss of $70 billion for the saga. The activist investors have called for a new salary and bonus scheme that becomes transparent and does not reward poor performance anymore. VW itself has released a statement claiming it’s working on a new structure for payments, set to take effect starting with the 2017 financial year.