Volkswagen is introducing a new remuneration system for managers in the Group from 2020. The new model applies for some 18,000 managers worldwide and is based on the revised system for the Board of Management and top management already in effect.

The central goal is to strengthen entrepreneurship. The new model takes return targets into account and establishes a link to share prices, it reinforces the Group idea, fosters cooperation between Group brands, companies and regions. At the same time, the system strengthens integrity and compliant conduct because it includes the possibility of taking individual wrongdoing into account when determining the variable remuneration element.

Board Member for Human Resources Gunnar Kilian said: “The introduction of the remuneration system for some 18,000 Group managers worldwide is a big step for Volkswagen. We are focusing on the company’s stabile profitability and robust development. We are strengthening team spirit and the Group idea, we are clearly placing the emphasis on joint performance and are thus taking cultural change into account in the remuneration of our leadership team. More than ever, we are all pulling in the same direction – in the Group, the brands and the regions.”

The new remuneration system no longer includes a personal performance bonus, priority is given to the financial development of the entire company and therefore to joint performance. Going forward, the annual bonus will focus on return figures rather than the operating result, and will be based on the operating return on sales (ROS) and the return on investment (ROI). With reference to the long-term bonus, previous performance indicators such as return, unit sales and customer satisfaction will be replaced by three new indicators: Earnings per preferred share, preferred share price, and the Volkswagen AG dividend.

The new system also provides for the possibility of reducing or even eliminating the variable remuneration element in the event of individual wrongdoing — with a view to fostering integrity and compliant conduct.