Volkswagen Will Continue To Pay Sacrificial Lamb CEO Winterkorn For An Additional Year

Volkswagen's former CEO Martin Winterkorn will be paid by the carmaker until his contract expires in a year's time, sources close to the company's supervisory board told Reuters.

Winterkorn took responsibility for VW's cheating of diesel emissions tests and resigned in September, within a week of the test manipulations becoming public in the U.S.

VW's supervisory board agreed that the 68-year-old's contract could expire at its due date on Dec. 31, 2016, the sources said, confirming a report by Germany's Handelsblatt newspaper and public broadcaster ZDF.

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MDarringer - 12/21/2015 9:44:35 AM

+2 Boost

Interesting. If they are still paying him, that means he cannot probably speak freely. Paying a severance would have liberated him.

Vette71 - 12/22/2015 10:44:29 AM

+1 Boost

Don't know German law but in he USA he would have an employment agreement that included actions taken by both parties if there is a parting of the ways:
1. Severence payment if terminated before the time in the contract
2. Vesting of stock options (that shows up as compensation)
3. Non compete agreement for some period of time (ergo he cannot go to a cpmpetitor) and likely cannot work
4. Mutual non-disparagement agreement. Neither can say much about the other other than he worked here.

CEO position in the states has become high risk, with average tenure 3 years.

7msynthetic - 12/21/2015 11:26:52 AM

+3 Boost

He will still get severance. No doubt about it.

MDarringer - 12/21/2015 12:52:42 PM

+2 Boost

You mean hush money?

mre30 - 12/21/2015 6:28:30 PM

+3 Boost

It was Piech's fault, not Winterkorn's. Winterkorn is a seasoned, skilled auto executive and he will definitely resurface running Volvo, Jaguar, Renault, or one of the Italians.

He might be the guy who restructures and fixes Fiat.

MDarringer - 12/22/2015 8:11:37 AM

+1 Boost

Let's assume it was Piech's fault. Winkerkorn would have known what was going on. He remained silent when he got the keys to the kingdom.