Volkswagen AG is basing its new long-term bonus program, not anymore on share price development, but on other key elements that include customer and employee satisfaction, sales numbers and profitability. This program takes effect in 2010.
Horst Neumann, VW’s personnel boss, said that unlike other companies, it no longer links management pay to the share price development. Stock options are said to no longer be part of executive remuneration. Before the new bonus is paid out, Neumann said that achievements for the last four years will be evaluated.
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