Poor market environment – VW Group cuts executive salaries

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Volkswagen AG managers should receive less money than planned. A company spokeswoman confirmed on Sunday that there will be no planned inflation bonus of 1,000 euros for VW managers or a 3.3 percent pay increase on May 1.

This should help increase operating profit margin to 6.5 percent by 2026, the report said. The Handelsblatt reported about it earlier. Accordingly, the money should not be disbursed due to the poor market environment. Oliver Blume’s board of directors also wants to forego money in solidarity.

“Members of management have a special responsibility for the company and act as role models, which is particularly important in the current situation,” the company spokeswoman said on Sunday.

An austerity program was agreed at the end of December
At the end of December, after months of struggle with the works council, Volkswagen reached agreement on the outlines of a billion-dollar savings program. The administrative personnel costs of the Volkswagen core brand must be reduced by 20 percent, but there will be no layoffs for operational reasons for the time being. More savings need to be made on material and fixed costs.

Source: Krone

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