The variable remuneration components for
Board of Management members comprise a bonus, which relates to business
performance over the previous two years, and a Long-Term Incentive (LTI)
plan, which is based on the previous four fiscal years.
The Supervisory Board determined that a
bonus will only be paid if the operating profit exceeds EUR 5 billion.
Furthermore, the bonus for the Chairman of the Board of Management for
fiscal years 2012 and 2013 will be capped at EUR 6.75 million. The cap
for the other Board of Management members will be EUR 2.5 million. The
Supervisory Board will review the methodology and the caps at regular
intervals to determine whether any adjustments are required.
In addition to these caps, a personal
performance payment totaling a maximum of 50 percent of the relevant
capped bonus may be awarded to individual Board of Management members
for special achievements that have contributed to sustained corporate
development. This provision takes greater account of the individual
performance of members of the Board of Management in determining
There has been no realignment of the LTI,
where the amount depends on the achievement of the targets laid down in
the Strategy 2018. Total remuneration of the Volkswagen Board of
Management for fiscal year 2012 amounted to around EUR 56 million (prior
year: around EUR 70 million), of which the Chairman of the Board of
Management received around EUR 14.5 million (around EUR 17.5 million).
(22 February 2013)