Volkswagen CEO Martin Winterkorn will receive a 14 million euros ($18.7 million) paycheck for 2012, 20 percent less than in 2011.
According to a report from German magazine Der Spiegel cited by Reuters, not only Winterkorn will see his salary reduced, as VW’s supervisory board will decide on a new compensation package for all management board members at its next meeting on February 22.
Der Spiegel, which did not cite sources, also reported that in the future, bonuses will only be paid to board members if the company’s profit reaches at least 5 billion euros. Volkswagen declined to comment on the report.
According to an earlier report by Der Spiegel, Martin Winterkorn himself proposed that he should take a pay cut, as the carmaker prepares to open wage talks with production staff in western Germany.
In conformity with current rules on executive pay, that combine fixed salary, bonuses and profit incentives, Winterkorn’s total compensation for 2012 should be about 20 million euros from a record 17.5 million euros in 2011, a company official previously said.
Martin Winterkorn is the highest-paid top manager among the biggest companies in Germany. The IG Metall labor union has called for limits on top managers’ pay packages.