Matthias Mueller’s pay package comes in the wake of VW almost doubling its 2017 operating profit despite being weighed down by the U.S. emission scandal.
On Tuesday, Volkswagen, EU’s biggest carmaker, reported that it has hiked up its CEO, Matthias Mueller’s, pay package, including benefits, by nearly 40% to $12.47 million (10.14 million euros).
In 2017, VW had introduced new compensation rules for managers to mitigate investor concerns over large bonuses paid to executives in the wake of the “dieselgate” emissions scandal.
Mueller, 64, whose contract expires in 2020, has earned almost a fifth more than the 8.6 million euros that Dieter Zetsche, Daimler’s CEO, earned in 2017; at that time Daimler’s Mercedes-Benz brand had beaten Audi and BMW in global luxury-car sales for a second year in a row.
In the wake of the diesel emission scandal, the VW group has almost doubled its 2017 operating profit as it pushes to move past the emission scandal and into self-driving and electric car territory.
Incidentally, in 2016, Mueller had earned 7.3 million euros under VW’s then backward-looking remuneration system which allowed bonuses to be partly based on VW’s performance over the previous two years.
Under its new rules however, VW’s supervisory board has capped total pay for its CEO to 10 million euros with top managers pay at 5.5 million euros.
According to VW, under Germany’s HGB commercial code, the overall compensation of its top executive board has jumped by 27% to 50.3 million euros in 2017 , up from 39.6 million a year ago.
As per sources, Mueller’s pay package exceeded the cap due to the addition of retirement provisions and perks, which are typically under HGB rules. Excluding these would see Mueller earning 9.5 million euros.
($1 = 0.8130 euros)