The Volkswagen emissions scandal occurred back at the end of 2015 however, now the German car manufacturer has spoken out and stated that they will set caps on executive pay, as it announced a return to profit or 2016 following the “diselgate” scandal the previous year.
There are new guidelines, which pay closer attention to financial performance of the company. The chief executive’s package will be restricted to £8.5m (€10m); other board members will be limited to £4.6m (€5.5m).
The former chief executive Martin Winkerkorn, who decided to leave the company after the emissions scandal, left with €17.5m in 2011 due to bonus payments.
Amid the scandal VW lost €1.6bn however, last year they claimed that they had a made net profit €5.1bn last year. The chief executive Matthias Mueller has stated “While the past fiscal year posed major challenges for us… the business gave its best-ever performance.”
VW owns many car companies including Porsche, Skoda & Audi, which delivered 10.3 million vehicles; this was driven by a strong demand in Europe and the Asia-Pacific region.
Despite all this, no compensation has yet been offered to the number of UK or European drivers affected.