Overview
- The measures, reported to take effect from 2027, would more than double the individual-performance share of managers' variable pay to about 35 percent while cutting the long-term variable portion to roughly 40 percent.
- Volkswagen is said to plan a global cut of about 5,500 management posts, reducing roughly 21,500 leadership roles to about 16,000 and replacing current management circles with a four-level model.
- A new three-criterion rating—goal achievement, behaviour, and impact—plus a stars-based Impact-Index would make managers directly comparable and allow formal demotions for underperformance.
- Reports say VW is also considering a separate ‘savings’ bonus to reward cost reductions, a step likely to be contested by the works council and unions and to raise governance and morale questions.
- The details come from multiple media reports and have not been officially confirmed by Volkswagen; the company’s supervisory board is due to discuss broader cost measures in July, which will be the next procedural milestone.