VW shares plummet after being caught out.

outoftheknow

And that is the separate issue of wether these payments should apply if the departure is somehow tainted. Presumably this is why they all walk before they are sacked. If they are sacked for their decisions the payments could presumably be withheld.

I don't believe walking away negates corporate responsibility for actions condoned though - it makes the payments rather obnoxious to me.....

I would prefer they were withheld where there is doubt about corporate actions and only paid if the legal cases and investigations clear the person from responsibility after they have walked. If that takes years to determine too bad. As CEao you wanted the big bucks to do the right thing - these departure/retirement bonuses are not just a reward for not getting caught doing the wrong thing IMO

FZR400RRSP

Can a CEO even be sacked?
From what I've seen/heard/read over the years, the 'done thing' is he resigns of his own volition or the rest of the board 'suggests' he resigns.
They don't 'sack' them, as such.

outoftheknow

And that is the separate issue of wether these payments should apply if the departure is somehow tainted. Presumably this is why they all walk before they are sacked. If they are sacked for their decisions the payments could presumably be withheld.

I don't believe walking away negates corporate responsibility for actions condoned though - it makes the payments rather obnoxious to me.....

I would prefer they were withheld where there is doubt about
The Board can sack him the same way they appointed him - as you point out though this is not done and I believe it is wrong. As long as he resigns, whether his decision or at the suggestion of the board, he can walk away with the rewards for a job well done and still be legally responsible for his actions in the job that turn out not to indicate a job well done. It kind of stinks IMHO.

FZR400RRSP

Would sacking him alleviate the payments, though?
Isn't it more likely he's got a watertight contract that guarantees him payments 'whatever'?

outoftheknow

More than likely.... That's kind of my point really. At this corporate level the rules and practices can be dubious at the best of times. Maybe why some feel they can condone bad decisions - allegedly - and walk away with a reward. That's how I see it anyway ...........

At lower levels there is a code of conduct and certain acts and decisions are listed as sack on the spot, do not collect £200 etc. you would keep payments received but no way you get a separation bonus. This should simply apply at all levels - even in VAG. Again all IMHO.

FZR400RRSP

There are those that argue that to get the best business people, this is to sort of contract it takes.
Of course, you can now argue whether he was the best person after all....

Sloppy Bob

I used to work for a company when I was a student and there was all this kerfuffle about a new CEO joining us from another retailer, all the things he was going to do and yadda, yadda.

He was doing a tour of the shops and I met him, it was quite obvious he didn't have a clue how our business worked, he was from volume retailing and we were a more high end prestige brand. High prices and lower turnover. His team seemed a bit bit more switched on but they still didn't seem to get it.
He lasted 8 months before he "resigned" and walked off with £7 Million and that was in the late 90's.

How do I get one of these jobs where I can be utterly useless and still make millions?

Trollslayer

How much of this is due to insanely low emissions requirements because of political pressure?

amd mad

Utterly useless and still make millions ,,, sounds like the England squad. .

AMc

Interesting background into what kicked it off.
How a fluke got Volkswagen caught—and why other automakers might be cheating, too

I was genuinely surprised that the original investigation was done on two VWs and a BMW X5.
The X5 didn't fail under moving tests.
The VW ECU clearly knew that as not all 4 wheels were moving they were being tested and played nice for the emissions.  (Edit sorry) When moving the VW was 35 times worse!
If another car can meet the test that doesn't suggest an insane level to me but I'm no expert!