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Volkswagen to Link Top Executives’ Bonuses to ESG Targets
- Carmaker boosted sustainability efforts after diesel scandal
- German firm’s cars account for about 1% of global CO2 output
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Volkswagen AG plans to link top executives’ bonuses to environmental, social and governance targets as the German industrial giant seeks to bolster sustainability credentials that are increasingly relevant to investors.
VW will seek shareholder approval for the updated remuneration system at its annual general meeting next year, Chairman Hans Dieter Poetsch told Bloomberg News in an interview. Executives’ compensation includes the bonus, a fixed salary and a long-term incentive plan linked to share-price performance.