VW's Chairman Pi ch bargained with his own corporate life late last week, when he gave up his post at VW in return for supervisory board spots for Porsche's CEO Wendelin Wiedeking and CFO Holger H rter. Considering Porsche is now Volkswagen's largest single shareholder — having purchased 18.5 percent of VW's shares in late 2005 — the move eliminates charges of conflict of interest between the Pi ch and the Porsche sides since the purchase (Pi ch's uncle Ferdinand founded Porsche, and Pi ch still sits on the board there) and thwarts attempts by directors to limit little Porsche's influence over the much-larger VW. Pi ch will step down in 2007 when his current contract expires, but remain on the board at Porsche. Now, industry watchers are asking whether Porsche's "dream team" will be distracted by concerns with a turnaround at ailing VW and screw the pooch, as they say in Stuttgart.
VW dispute ends in deal: Porsche heir to step down [International Herald Tribune]
Related:
Porschewagen Denies Plans to Further Increasing Share of VW [internal]