VW to Cap CEO Pay at €10 Million

Volkswagen’s Chief Executive Officer, Matthias Muller, is set to have his pay capped at €10 million ($10.7 Million) reports Reuters. Board members, meanwhile, will make less under a new scheme aimed at reigning in executive pay.

The automaker has long been the target of criticism for its highly paid executives, as its former CEO, Martin Winterkorn, was the highest paid of any of the German firms. In 2014, he was paid just under €16 million.

VW’s new plan extends beyond capping salary, though. The plan aims to give executives a higher fixed salary with less variable pay. Bonuses, for example, would be tied to dividends and VW stock price.

Executives would also invest in company stock, which would then be held for a number of years.

Such a plan has been under discussion for some time, and VW’s 20-member supervisory board is set to review this plan on February 24.

[source: Automotive News]