Volkswagen has announced that it will place a cap on executive pay following the “dieselgate” scandal.
The new rules require that each pay an executive receives will be a reflection of financial performance.
There will be a 5.5m euro cap on the board members pay while the chief executive’s salary will not exceed 10m Euros.
Volkswagen recorded a net profit of 5.1bn in 2016, which cancelled out the 1.6bn loss it suffered in 2015 as the emissions-cheating scandal took effect, reports BBC.
Chief executive Matthias Mueller said that as much as the previous year posed them with a set of challenges, they still managed to record one of their best performances. His remarks were made after a meeting with the VW supervisory board at its Wolfsburg headquarters on Friday.
The German carmaker was able to deliver 10.3 million vehicles in the last fiscal year even as the scandal became more daunting. This delivery was facilitated by a strong demand in Europe and the Asia-Pacific region.
The huge delivery helped VW, also the owner of the Porsche, Audi and Skoda brands, to overtake Toyota to become the world’s number car seller.
Mr Mueller said that the firm has a strong grounding in both operational and financial terms. Its future is not questionable, considering the good records so far.
With the huge success, VW has set aside money that will be used for paying fines, fixing erroneous cars or buying them back.
600,000 vehicles were affected in the United States and the company has made a commitment to plead guilty and get the matter done away with.
As at the moment, none of the over a million UK or European drivers affected have been compensated – a move that has angered politicians and regulators.