VW executives to cut salary by 10% in order to reduce bonuses, German newspaper reports Via Reuters

BERLIN (Reuters) – A reduction in executive bonuses at Volkswagen (ETR: ) will lead to a 10% pay cut for the next two years, Sueddeutsche Zeitung newspaper reported on Sunday, after the German carmaker make an agreement with the unions. jobs and reduce production.

The reduction will apply to May bonus payments, leading to a 10% pay cut in 2025 and 2026 for 4,000 executives, the newspaper said. In the next three years, their salary will decrease by 8%, 6% and 5%, it added.

A Volkswagen spokesman declined to comment on the report. Representatives of the IG Metall union and the company’s works council were not immediately available for comment.

Volkswagen, Europe’s top carmaker, announced major changes on Friday at its German operations, including more than 35,000 job cuts in the future and drastic capacity reductions in an agreement reached with unions. of workers after days of tough negotiations.

The deal sought to prevent a major blow-up at the company, whose problems have signaled a deep recession in German industry.