Second shareholders’ meeting in digital form for VW: Even without a direct exchange of blows, there should be headwinds for the top of the group on a number of points.
The management of Volkswagen will face the shareholders at the online annual general meeting today.
Some shareholders have submitted critical questions – for example about the “Dieselgate” compensation for ex-CEO Martin Winterkorn and other managers, the new remuneration system for board members or the climate strategy of Europe’s largest car manufacturer.
One focus of interest is likely to be on the out-of-court deal on damages in the emissions scandal with former top decision-makers. VW had agreed with lawyers and insurers in June that Winterkorn would pay 11.2 million euros. Part of the responsibility for the affair of falsified emissions is to be compensated. The chunk of the total of 288 million euros – it also includes claims against ex-Audi boss Rupert Stadler, former Porsche board member Wolfgang Hatz and Audi manager Stefan Knirsch – comes from specialized liability insurance.
The majority of VW owners have to agree to this. Some find fault with the agreement. The expert for good corporate governance of the Deutsche Bank fund subsidiary DWS, Hendrik Schmidt, says that the liability settlements “will not be supported explicitly. In both cases, Mr. Winterkorn and Mr. Stadler waive any remuneration commitments for periods after their respective departure from the VW Group. So, de facto, something is being given up that was not deserved ».
The comparison is also politically controversial. The Greens in Lower Saxony’s state parliament criticized him as a preliminary decision before the role of the manager was legally clarified. “It is very unusual for VW to conclude a civil law settlement with the former CEO while the criminal proceedings are still ongoing in the same matter,” said parliamentary group leader Julia Hamburg of the “Braunschweiger Zeitung”. In mid-September, the diesel fraud trial against Winterkorn and other ex-executives begins before the Braunschweig regional court.
Finally, a decision has to be made at the digital shareholders’ meeting about a new type of salary calculation for the board members. It provides for the inclusion of environmental and social goals. DWS is bothered by the fact that these criteria should primarily be taken into account in the annual bonus – while another bonus based on several previous financial years remains largely unchanged.
There should also be headwinds when it comes to climate protection. VW wants to be CO2-neutral on the balance sheet by 2050 at the latest, the group has sharpened some goals along the way. The environmental organization BUND praises the gradual exit from the combustion engine, but complains that the Wolfsburg-based company will hold onto it for years at the same time. “Too many, too large, too heavy and overpowered vehicles with internal combustion engines are still being sold”.
As a dividend for the 2020 financial year, VW proposed a level of 4.86 euros per preferred share, which remains the same as in 2019. At the online meeting, the supervisory board seat of the new works council boss Daniela Cavallo must also be confirmed. There is criticism from the ranks of investors about the planned extension of the mandate for some other supervisors: The interest mix is high – and VW once again missed the opportunity to send more independent experts to the board.
The owner families Porsche and Piëch hold 53 percent of the voting ordinary shares in the group through the holding company Porsche SE. A further 20 percent are held by the state of Lower Saxony and 17 percent by a state fund from Qatar. The advantages listed in the Dax have no voting rights. If the large common shareholders agree, the votes should therefore be quite clear.
Jane Stock is a technology author, who has written for 24 Hours World. She writes about the latest in technology news and trends, and is always on the lookout for new and innovative ways to improve his audience’s experience.
