Volkswagen Chief Executive Matthias Mueller will push for a significant reduction in bonuses for the carmaker's management board say sources. As Hayley Platt reports. some are questioning whether any bonuses should be paid.
Bosses at Volkswagen could see their bonuses cut following a complaint from one of its major shareholders. The state of Lower Saxony is angry that VW may still reward its top executives, despite the high cost of the 'Dieselgate' scandal. (SOUNDBITE) (English) SEVEN INVESTMENT MANAGEMENT'S, PARTNER/MARKETING DIRECTOR, JUSTIN URQUHART-STEWART: "Some people if they've improved sales, the quality of the product may be due a bonus but for senior management, frankly don't deserve anything at all, only when they've resolved this situation and they've won back they're spurs to show themselves as being a reliable trustworthy business would anyone frankly deserve a bonus." More than 500 lawsuits have been filed in the US alone, since the scandal hit the headlines last September. Thousands of diesel cars have also been recalled and the company's share price has dropped by a third. One German media report suggests VW chief Matthias Mueller wants senior managment bonuses cut by a third. (SOUNDBITE) (German) HEAD OF CAPITAL MARKETS ANALYSIS AT BAADER BANK, ROBERT HALVER, SAYING (on VW): "There are two sides to the VW issue, the legal aspect and the moral aspect. The board is entitled to bonuses but morally and in light of the emissions scandal, board members or managers might actually say they'll renounce their bonus." VW's due to reveal its financial position later this month. In the meantime, the bonus issue is likely to remain a source of friction between management and staff.