A “revolutionary” system. Volkswagen, which likes to honor its nickname of “Germany’s social lab,” is innovating again with a “revolutionary program,” as its personnel director, Horst Neumann, called it, for the calculation of management bonuses. Starting next year, VW will introduce a “long-term bonus” (Langzeitbonus) related to the company’s performances over 4 years. Over this period, a lot of information will be taken into account to calculate the amount to be paid, not only the company’s level of profit or losses. While Mr. Neumann didn’t reveal the complex system which will allow for the calculation of this bonus, he nevertheless detailed its terms. The level of job security offered to employees, the evolution of market shares and the evolution of sales will be taken into account. In additional to the achievement of some personal objectives, the amount of the bonus will depend, of course, on sales and profits but also on the average amount of bonuses for the past four years. With this last point, Volkswagen is setting a limit, even variable, to bonuses. Bonuses may be partially or fully cancelled retroactively if the company’s profit is negative. Finally, annual surveys on customers and employees’ satisfaction will be taken into account.
ts terms. The level of job security offered to employees, the evolution of market shares and the evolution of sales will be taken into account. In additional to the achievement of some personal objectives, the amount of the bonus will depend, of course, on sales and profits but also on the average amount of bonuses for the past four years. With this last point, Volkswagen is setting a limit, even variable, to bonuses. Bonuses may be partially or fully cancelled retroactively if the company’s pr
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