VW management accepts bonus cuts of at least thirty percent: source

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Source:   —  April 13, 2016, at 4:19 PM

Volkswagen'south (VW) second-largest shareholder, the German state of Lower Saxony, wants management bonuses to be scrapped altogether while VW'south powerful work leaders have also been pushing for bonuses to be scrapped or lowered as they wrestle with senior managers over cost savings.

Volkswagen's () top management board has agreed to a slice of at least thirty % in bonus payments, one person familiar with the matter said, as the carmaker tries to resolve a dispute over executive compensation.

Volkswagen'south (VW) second-largest shareholder, the German state of Lower Saxony, wants management bonuses to be scrapped altogether while VW'south powerful work leaders have also been pushing for bonuses to be scrapped or lowered as they wrestle with senior managers over cost savings.

Further measures are being discussed to attain an extra reduction in variable pay, the person told Reuters on Wednesday, but the cuts may not go distant sufficient to resolve the dispute as VW faces multi-billion-euro costs of "Dieselgate," sources near to the supervisory board said.

VW declined to comment. Lower Saxony and VW'south works council didn't return calls seeking comment.

Executive bonuses in two thousand-fourteenth accounted for fifty-four million euros ($61 million) of the seventy million euros in total compensation for VW top managers, according to company data. That'south nearly double the thirty-seven million euros rival Daimler () paid its top managers in fixed and flexible salaries last year.

VW, Europe'south largest carmaker, earlier on Wednesday confirmed a Reuters report that said its management and supervisory boards have agreed to bring about a significant reduction in executive bonuses.

The person familiar with VW'south bonus negotiations said one option may be that VW executives invest in the carmaker, without being more specific. VW'south supervisory board is scheduled to sign off on two thousand-fifteenth results and executive compensation on April 22.

(Reporting by January Schwartz; Extra reporting by Andreas Cremer; Editing by Jonathan Gould and Elaine Hardcastle)

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