February 8, 2013 / 2:40 PM / 5 years ago

VW chief seeks cut to own package ahead of factory pay talks

BERLIN, Feb 8 (Reuters) - Volkswagen Chief Executive Martin Winterkorn has proposed that he should take a self-imposed pay cut, Der Spiegel reported, as the company prepares for wage talks with production staff in western Germany.

Current rules on executive pay, combining fixed salary, bonuses and profit incentives, would boost Winterkorn’s total compensation for 2012 to about 20 million euros ($26.8 million) from a record 17.5 million euros in 2011, a company official has said.

“If I were seriously to get 20 million euros, it would surely not be possible to explain this to the people,” Winterkorn told the German magazine in an interview published on Friday.

About 100,000 workers at VW’s six factories in western Germany and its financial services division are gearing up for pay talks with management this spring.

The company may face calls by the IG Metall union for as much as a 6.5 percent pay increase, VW’s works council chief Bernd Osterloh said on Jan. 31.

Winterkorn’s plea for his own package to be reduced will be taken up by the car maker’s supervisory board, which may use its next meeting on Feb. 22 to decide on steps to limit future increases in executives’ compensation, Osterloh said. ($1 = 0.7469 euros) (Reporting by Andreas Cremer; Editing by David Goodman)

0 : 0
  • narrow-browser-and-phone
  • medium-browser-and-portrait-tablet
  • landscape-tablet
  • medium-wide-browser
  • wide-browser-and-larger
  • medium-browser-and-landscape-tablet
  • medium-wide-browser-and-larger
  • above-phone
  • portrait-tablet-and-above
  • above-portrait-tablet
  • landscape-tablet-and-above
  • landscape-tablet-and-medium-wide-browser
  • portrait-tablet-and-below
  • landscape-tablet-and-below