Vw tying salaries of its top managers to customer and employee satisfaction

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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monster - 12/18/2009 3:33:47 PM

+4 Boost

This is a very good direction. This will put pressure back at the company to make better cars. Issues will be reported back to the companies and actions would be taken. At least this is what I hope. May be in couple of years I can start looking at VW as my first European car.

truckman - 12/19/2009 3:46:02 AM

+3 Boost

ALL COMPANIES SHOULD FOLLOW VW'S LEAD here, now the bosses are going to have to work to get there big Christmas bonuses, lol

Joe_Limon - 12/19/2009 4:48:28 AM

+3 Boost

Great idea, this will refocus managements emphasis on the consumer, and not on ways to give good news and strengthen the stock price.