German Prosecutors Open Investigation To See If VW Union Bosses Were Being Paid Too Much

German prosecutors are investigating current and former executives at Volkswagen on suspicion that they paid works council chief Bernd Osterloh an excessive salary.

In Germany, wasting corporate funds is legally a breach of fiduciary duty.

"I can confirm that the Braunschweig prosecutor's office currently has a case on early suspicion of breach of fiduciary trust," Braunschweig prosecutor Julia Meyer said in an emailed statement.

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TheSteve - 5/12/2017 12:41:43 PM

+2 Boost

Wow! The premise of it being illegal to pay executives "too much" is so alien to the American mindset. The US is infamous for having the most highly paid[1] corporate royalty.

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[1]Expressed in multiples of the average worker's salary.

Vette71 - 5/12/2017 5:43:09 PM

+3 Boost

The VW Works Council head is like a super UAW shop steward in charge of union members at a USA auto manufacturer. The council has to approve many of the things the company does that affect their members. Far more heavily involved in business decisions than a USA union.

MDarringer - 5/12/2017 7:01:33 PM

0 Boost

The works council also has a tremendous conflict of interest in (1) protecting workers while (2) being "in bed" with helping VW make money.

But Germany is a Liberal-Fascist country so such things make perfect sense.