Volkswagen CEO Martin Winterkorn gets a 20 percent pay cut for 2012

Published by Andrew Christian @andrew4wheels Google+ | Tuesday February 19, 2013

Volkswagen CEO Martin Winterkorn gets a 20 percent pay cut for 2012

For 2012, Volkswagen CEO Martin Winterkorn will be given a 14 million euros ($18.7 million) payment – about 20% lower than what he got last year, according to German magazine Der Spiegel. No sources were cited. The report also mentioned that at the next meeting of the VW's supervisory board on February 22, the members will decide on a new compensation package for all management board members.

The magazine also said that in the future, board members will only receive bonuses if the automaker’s profit is able to hit or surpass 5 billion euros. VW has so far not made a comment on this report. Last week, Der Spiegel said that Winterkorn suggested a pay cut for himself as the automaker readies to enter wage negotiations with production workers in western Germany.

According to a VW executive, the total compensation for Winterkorn for 2012 will be about 20 million euros under the present rules on executive pay that combines fixed salary, bonuses and profit incentives. In 2011, Winterkorn had received a record high compensation of 17.5 million euros. Winterkorn is the top-paid company manager in Germany. The IG Metall labor union has been urging companies to put a cap on the pay packages of their top managers.