Today, June 9, the German carmaker Volkswagen announced that it has reached an agreement with former CEO Martin Winterkorn and three other former top managers on the issue of compensation for the dieselgate. In total, VW will receive € 288 million from them.
Most of the amount – € 270 million – will be paid by the company that insured the liability of top managers for possible harm during the performance of their activities. Mr. Winterkorn will pay € 11.2 million, the former head of Audi Rupert Stadler – € 4.1 million, the former member of the Porsche board of directors Wolfgang Hatz – € 1.5 million, and the former member of the Audi board of directors Stefan Knirsch – € 1 million. to be approved by VW’s general meeting on July 22nd.
Mr. Winterkorn led VW during the 2015 diesel falsification scandal. He resigned from his post a week after the start of the scandal. The current VW management considered that Mr. Winterkorn and some other top managers violated their obligations to protect the interests of the company – among other things, they did not conduct a timely verification of these violations, and demanded compensation from them. Dieselgate cost VW more than € 32 billion, which the company had to pay in the form of fines, compensation and legal fees.