The cut will result in a 39% cut – from 5.3 million euros to 3.2 million euros. The amount actually paid will be about 1 million euros lower, or 57% lower than the previous amount paid in the last fiscal year.
“The Board of Management is making tremendous efforts to reinforce the trust of customers, to motivate the workforce and to safeguard employment at all locations,” said Matthias Müller, chairman of the Board of Management ofVolkswagen Aktiengesellschaft, in a statement. “The proposal concerning remuneration has therefore been made unanimously by the Board of Management. This arrangement expresses the commitment of the Board of Management to the company, its employees and its customers.”
The Board of Management also decided to not be paid in full, rather 30% of the remuneration will be postponed for three years. The company said it plans to reduce the remuneration over the next “several years.”
Hans Dieter Pötsch, chairman of the Supervisory Board, announced he was retroactively waiving part of his variable remuneration for the 2015 fiscal year, which amounted to 2.3 million euro, at his own request.
The news comes on the heels of the company seeing costs of nearly $18 billion related to the diesel emissions scandal in the United States.