VW CEO Martin Winterkorn Will Get His Pay Cut for 2012 image

According to Der Spiegel magazine, VW Chief Executive Martin Winterkorn will be paid for last year 14 million euro, 20% less from 2011.

According to anonymous sources, the automaker’s supervisory board will decide on the next meeting on February 22nd, a new compensation package for all members of the management board and bonuses will be offered to board members only if the automaker’s profit will hit at least 5 billion euro. The magazine also reported that Wintekorn himself said last week that he should take a pay cut, as the automaker will have to handle wage talks with labor unions in western Germany.

In 2011, Winterkorn earned 17.5 million euros, the most of any CEO of companies listed on Germany’s DAX Index. In March 2012, the IG Metall labor union called for limits on top managers’ pay packages, which promted Bernd Osterloh, the top labor representative at VW, to say that the supervisory board is considering revising criteria for salary and benefits.

“There’s no question that 2012 will be considerably harder, mostly in Europe and there particularly in the highly indebted countries such as Italy and Spain,” said Winterkorn in 2011 after being named ‘Manager of the Year 2011’.