In a written statement, Volkswagen AG has chosen labor law specialist Frank Fabian to head a newly created governance risk and compliance department. Fabian is expected to play an independent management role that will strengthen compliance with the company's code of conduct.
The 44-year-old Fabian, who joined VW in 2001 as head of the labor law department, will report directly to VW CEO Martin Winterkorn.
Fabian, who worked in private law practice before joining VW, was involved in developing company policy on compliance with corporate governance. He also helped set up the compliance department.
Fabian will be in charge of policing the company's code of conduct a few years after VW was shaken by accusations of bribery and sex parties involving executives.
In 2009, Klaus Volkert, the powerful former head of VW's works council and a member of the supervisory board, was jailed for 33 months for breach of trust and breaches of German labor law.
Volkert’s trial heard allegations of sex parties with prostitutes and bribe taking. Commenting on Fabian’s appointment, Winterkorn said that there can be no compromises as far as complying with the company code of conduct is concerned.
He added that VW is adopting an innovative approach by bringing together governance, risk and compliance in a single department.