CEO Martin Winterkorn resigned after Volkswagen was involved in a diesel emissions scandal.
On Wednesday the CEO of Volkswagen resigned from his post. Martin Winterkorn resigned as a consequence of a scandal. The scandal is surrounding the diesel emissions of Volkswagen vehicles. The resignation does not mean Winterkorn will leave empty handed.
On the contrary the CEO will receive a pension worth $32 million on his departure, reported Bloomberg. If a supervisory board handles Winterkorn’s exit in a positive light then he may receive millions more in severance.
On Wednesday Winterkorn announced he has asked the board of Volkswagen to terminate his position. When asked the spokesperson for Volkswagen Claus-Peter Tiemann declined to comment.
Tiemann also refrained from revealing how much the former CEO of Volkswagen will receive on his departure. But the recent annual report of Volkswagen reveals the CEO since 2007 is probably going to receive 2 cheques after leaving.
Winterkorn’s pension is stated at 28.6 million euros or $32 million. The report does not have any condition where the company can withhold the pension. The report also specifies the former CEO can receive severance for at least 2 years. But if the board decides to eliminate the employment of Winterkorn for a reason then the severance is not viable.
In 2014 Winterkorn was already the 2nd highest paid CEO in Germany. Winterkorn was receiving an annual salary of 16.6 million Euros from Volkswagen. On Wednesday even the board of Volkswagen announced Winterkorn had no idea the emission data was being manipulated. The board also revealed they respect Winterkorn and are thankful for his contributions.
Complete statement of Volkswagen CEO Martin Winterkorn is given below:
"I am shocked by the events of the past few days. Above all, I am stunned that misconduct on such a scale was possible in the Volkswagen Group.
As CEO I accept responsibility for the irregularities that have been found in diesel engines and have therefore requested the Supervisory Board to agree on terminating my function as CEO of the Volkswagen Group. I am doing this in the interests of the company even though I am not aware of any wrong doing on my part.
Volkswagen needs a fresh start – also in terms of personnel. I am clearing the way for this fresh start with my resignation.
I have always been driven by my desire to serve this company, especially our customers and employees. Volkswagen has been, is and will always be my life.
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The process of clarification and transparency must continue. This is the only way to win back trust. I am convinced that the Volkswagen Group and its team will overcome this grave crisis."