Copyright Sean Gallup, Getty Images
Industryweek 13758 Volkswagen Logo 2 G Seangallup
Industryweek 13758 Volkswagen Logo 2 G Seangallup
Industryweek 13758 Volkswagen Logo 2 G Seangallup
Industryweek 13758 Volkswagen Logo 2 G Seangallup
Industryweek 13758 Volkswagen Logo 2 G Seangallup

Volkswagen Pushes Team Spirit in Management-Bonus Overhaul

Dec. 19, 2018
The automaker is eliminating individual performance when determining executive bonus payouts.

Volkswagen AG wants its managers to be more team-oriented and is eliminating individual performance when determining executive bonus payouts.

Starting next year, the remuneration of more than 400 top managers will be based on overall group performance, indicated through stock prices as well as earnings and operating achievements.

“We are clearly placing the emphasis on joint performance,” Gunnar Kilian, VW’s personnel chief, said Wednesday in a statement. “The group, the brands and the regions will all be pulling in the same direction.”

The changes are meant to align Volkswagen’s senior management interests closer to investors.

In response to the diesel-cheating scandal three years ago, Volkswagen is making executives more accountable and will now be able to claw back past payouts in the event of individual wrongdoing. In May, CEO Herbert Diess pledged to step up integrity and compliance efforts to make VW a more “honest, more open” company.

Long-term payout will be based on virtual shares, which vest after three years and are tied to the stock’s performance and earnings per share. The annual bonus will focus on operating-profit margins and return on investment.

By Chris Reiter

Popular Sponsored Recommendations

Empowering the Modern Workforce: The Power of Connected Worker Technologies

March 1, 2024
Explore real-world strategies to boost worker safety, collaboration, training, and productivity in manufacturing. Emphasizing Industry 4.0, we'll discuss digitalization and automation...

3 Best Practices to Create a Product-Centric Competitive Advantage with PRO.FILE PLM

Jan. 25, 2024
Gain insight on best practices and strategies you need to accelerate engineering change management and reduce time to market. Register now for your opportunity to accelerate your...

Transformative Capabilities for XaaS Models in Manufacturing

Feb. 14, 2024
The manufacturing sector is undergoing a pivotal shift toward "servitization," or enhancing product offerings with services and embracing a subscription model. This transition...

Shifting Your Business from Products to Service-Based Business Models: Generating Predictable Revenues

Oct. 27, 2023
Executive summary on a recent IndustryWeek-hosted webinar sponsored by SAP

Voice your opinion!

To join the conversation, and become an exclusive member of IndustryWeek, create an account today!