Board of Management Remuneration
The remuneration of the members of the Board of Management conforms to the requirements of the Aktiengesetz (AktG – German Stock Corporation Act) and to most of the recommendations set out in the German Corporate Governance Code. In particular, the remuneration structure is focused on ensuring sustainable business growth in accordance with the Gesetz zur Angemessenheit der Vorstandsvergütung (VorstAG – German Act on the Appropriateness of Executive Board Remuneration) (section 87(1) of the AktG). The recommendations in article 4.2.3(2) sentences 2 and 3 (comparison parameters for variable compensation) of the current version of the Code are being implemented. The remuneration system of the members of the Board of Management was approved by the Annual General Meeting on May 10, 2017 by 80,96 % of the votes cast.
The remuneration system of the Board of Management comprises non-performance-related and performance-related components.
The non-performance-related components of the package ensure firstly a basic level of remuneration enabling the individual members of the Board of Management to perform their duties in the interests of the Company and to fulfill their obligation to act with proper business prudence without needing to focus on merely short-term performance targets.
On the other hand, performance-related components, dependent among other criteria on the financial performance of the Company, serve to ensure the long-term impact of behavioral incentives. Upper limits are in place for both the overall remuneration and the performance-related remuneration components.
In fiscal year 2020, the members of the Board of Management received remuneration totaling €38,228,118 (45,394,272). The non-performance-related remuneration amounted to €18,578,569 while the performance-related components amounted to €6,903,129 and the annual bonus amounted to €12,746,420.
You can find further information on Management Board Remuneration in the Remuneration Report of the Annual Report 2020.
Supervisory Board Remuneration
Under Article 17 of Volkswagen AG’s Articles of Association, the remuneration of Volkswagen AG’s Supervisory Board is composed of a fixed component (plus attendance fees) and a variable component that depends
on the amount of the dividend paid. The duties performed by the respective member on the Supervisory Board are also taken into account. Several members of the Supervisory Board are also members of the supervisory boards of subsidiaries. The remuneration received there is based on the provisions of the relevant Articles of Association and also comprises a fixed component and a variable component that is linked to the amount of the dividend paid. This remuneration is contained in the following figures.
In fiscal year 2020, the members of the Supervisory Board received €5,341,196 (5,327,155). Of this figure, €2,294,167 related to the work of the Supervisory Board and €1,008,889 related to the work in the committees.
You can find further information on Supervisory Board Remuneration in the Remuneration Report of the Annual Report 2020.
Remuneration Report 2020