Volkswagen shareholders question bonuses in wake of US scandal

The German company agreed to pay $4.3 billion in civil and criminal fines in a settlement with the US Department of Justice (DoJ) on Wednesday, the largest ever US penalty levied on an automaker. PHOTO: COURTESY

Volkswagen investors have demanded reforms and questioned executive bonuses. This is after the carmaker admitted to criminal offences in rigging US emissions tests and prosecutor’s indicted six current and former managers over the scandal.

The German company agreed to pay $4.3 billion in civil and criminal fines in a settlement with the US Department of Justice (DoJ) on Wednesday, the largest ever US penalty levied on an automaker.

Volkswagen (VW) admitted about 40 employees at its VW and Audi brands deleted thousands of documents in an effort to hide from US authorities the systematic use of so-called defeat devices to rig diesel emissions tests, a scale of wrongdoing that led some investors to call for deep reforms.

 “For senior management to receive any bonuses in 2017, we would now expect VW to deliver a dramatic improvement in profits,” said Ben Walker, partner at activist hedge fund TCI, which last year publicly criticised “corporate excess on an epic scale” at the carmaker. - Reuters