With the German car manufacturer Volkswagen (VW), the group administration is now also involved in the savings program (see video above). The Board of Directors will abandon eleven percent of their references in this and next year, as decided in the recent meeting.
VW and Porsche Baas Oliver Blume received more than ten million euros in salary in 2024. The pension and variable remuneration have been taken into account for several years. In total, the nine group of board members received around 40 million euros in the previous year.
They were already apart from some of their references. The discount was five percent at that time and only referred to the fixed content that forms the smaller part of the payment. The future cuts, on the other hand, apply to the entire reimbursement.
A salary exemption of eleven percent is planned in 2025 and 2026, in 2027 the discount is expected to be 8.5 percent, then 5.5 percent in the year 6.5 and 2029. In five years the board wants to return to the previous amount.
Requirement of the Council of the Works
The head of the Daniela Cavallo board council had demanded in the collective negotiating dispute of 2024 that the top of the group must also participate in the austerity course and without salary. The board had agreed, but initially left the height open. We were talking about a disproportionate amount.
The company and the trade union agreed in December on a renovation program for the core brand VW. By 2030, 35,000 jobs must be dropped in Germany, which corresponds to approximately every fourth place. In addition, various bonus payments and reimbursements were shortened, the wage increases were put on ice. In exchange, VW with work closures and operational termination appears.
Source: Krone
I’m Ben Stock, a journalist and author at Today Times Live. I specialize in economic news and have been working in the news industry for over five years. My experience spans from local journalism to international business reporting. In my career I’ve had the opportunity to interview some of the world’s leading economists and financial experts, giving me an insight into global trends that is unique among journalists.
