Volkswagen Sets Caps on Executive Pay

Following its biggest ever loss in 2015, and a tumultuous scandal, Volkswagen has posted 2016 profits and is projecting to see slightly higher new car sales this year. The company has taken measures to quell uneasy investors and to ensure fairness and meritocracy within their c-suite. One recent initiative that they have taken is to set a cap on their executive pay. Executive packages will be limited to 10 million euros while packages for other board members will be limited to 5.5 million euros. Former executive, Martin Winterkorn walked away from the scandal with a whopping 17.5 million euros due to large bonus payments. This will no longer be the case.

Volkswagen reported a net profit of 5.1 billion euros last year compared to their 1.6 billion euro loss from 2015. The company has a promising future and is well positioned to make a comeback from its massive emissions-cheating scandal.  Volkswagen beat out Toyota in car manufacturing and is projecting a 4% increase in revenue this year. However on the flip side, Volkswagen still has many legal hoops to go through, but with that being said, they have put aside a total of 22.6 billion euros for fines, fixing and/or buying back defective vehicles.

WSJ

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