VW Mangement Takes $300 million Euro Paycut

https://www.reuters.com/business/autos-transportation/vw-managers-take-combined-300-mln-euro-pay-cut-reports-local-newspaper-2025-01-08/
VW managers to take combined 300-mln-euro pay cut, reports local newspaper

Volkswagen’s board would take a larger cut proportional to their salary than the rest of management or the workforce, Killian told the paper, declining to provide further details.

https://www.reuters.com/business/autos-transportation/vw-managers-get-10-pay-cut-plan-slash-bonuses-german-newspaper-reports-2024-12-22/
VW managers to get 10% pay cut in plan to slash bonuses, German newspaper reports

A reduction in managers’ bonuses at Volkswagen (VOWG_p.DE), opens new tab will lead to a 10% pay cut for the next two years, the Sueddeutsche Zeitung newspaper reported on Sunday, after the German carmaker struck a deal with unions to axe jobs and scale back production.

The reduction will apply to May bonus payments, leading to the 10% pay cut in 2025 and 2026 for 4,000 managers, the newspaper said. In the following three years, their pay will fall by 8%, 6% and 5%, it added.

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The Germans are clearly socialists. USian JCs take a cut? I remember when Lucent cut retiree medical benefits, to “save $20M”. Then the Board handed CEO Pat Russo a $20M bonus.

Steve

One would love to think European managers having more common sense than their US counterparts but the primary driver might have been the state of Lower Saxony (holding 20% of shares) and trade unions being strongly represented in VW’s board.

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