Business · Companies · 7 hrs ago

Report: Volkswagen lowers profit threshold for full manager bonuses

Report: Volkswagen lowers profit threshold for full manager bonuses

Volkswagen lowered the profit threshold for full manager bonuses, according to a report citing internal company documents.

The report says an operating profit margin of 3.8% now qualifies for the full bonus on that measure, while the same margin qualified for only half of it a year earlier.

Last year, managers needed a 5.8% margin for the full bonus; this year, that level brings the maximum payout of 175% for the measure.

Volkswagen’s finance chief Arno Antlitz had described the 3.8% margin as too low while explaining the need for savings, though other measures also affect total bonuses.

The supervisory board sets managers’ performance thresholds each year, but its spokesperson declined to comment when asked about the reported change.

The news comes as Volkswagen plans billions in savings and around 12,000 additional job cuts by 2030, on top of 35,000 already agreed, while IG Metall is mobilizing against the cuts.

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Internal company documentsDocuments cited in the report
coincidentally exactly the value from which Antlitz (...) and the entire Volkswagen management receive their full bonus for this metric
via Spiegel