Somebody buy Volkswagen CEO Matthias Müller a sandwich. Volkswagen allegedly is planning to cap its chief executive pay at €10 million (approximately $10.7 million), reports German publication Handelsblatt, citing an unnamed source.
Under these new plans, execs would:
...receive a higher fixed salary and lower variable compensation. Bonuses wouldn’t play as great a role as in the past, company sources told Handelsblatt. Variable compensation has been about four times higher than fixed compensation.
Executives would also invest a portion of their money in company stock, which they would not be able to redeem for several years. Bonuses would be tied to dividends and VW’s stock price, sources said, so that the consequences of a bad year would also be reflected in executive pay.
This move is likely because Volkswagen was criticized for paying its executives exorbitantly. Martin Winterkorn, VW’s former CEO, was paid around €16 million (approximately $17 million) in 2014, according to Automotive News. The cap will be discussed during a board meeting on Feb. 24, writes Handelsblatt.
Let me tell you, I was seriously bummed out after I learned of this. Especially after looking at how much the CEOs of The Big Three make over here.